Shah Capital sells $32.6 million in Novavax shares, ends activist campaign
Key Facts
Shah Capital sold approximately $32.6 million in Novavax shares as it ended its intent to influence control of the company, according to a regulatory filing dated October 16, 2026, and a Benzinga report. Total sales through October 5 reached 2,870,000 shares, according to the filing with the U.S. Securities and Exchange Commission. The sales were executed at an average price of $11.3486 per share. Himanshu Shah retained beneficial ownership of 10,656,964 shares in the vaccine maker, representing 6.46% of its share capital. The reporting persons intend to report their holdings using the simplified ownership disclosure form going forward, having ended their intent to influence control.
The restructuring included the establishment of the Himanshu Shah Family Office to manage investments, Reuters reported on October 16. The agency added that the investor had applied to the U.S. Securities and Exchange Commission to voluntarily withdraw its registration as an investment adviser. Separately from the holding attributed to Himanshu Shah, Reuters reported that Shah Capital's beneficial ownership stood at 10.54 million shares. That holding represents about 6.39% of Novavax, according to the agency's report. Shah Capital's beneficial ownership in a May 2026 filing accompanying its campaign presentation to the board stood at 14,714,705 shares, representing 8.95% of the company.
Shah Capital's campaign had criticized Novavax's partnership with Sanofi, describing its performance as disappointing, according to a presentation filed with the U.S. Securities and Exchange Commission. The investor also criticized capital markets management and accused the company's leadership of putting its own interests ahead of building value. The presentation described the leadership as working to "enrich itself rather than build value." Shah Capital said at the time that it would vote against 5 proposals at the shareholder meeting scheduled for June 18, 2026. In an earlier statement, Novavax said Shah Capital had pledged to support its board and that the two sides were aligned on a set of transformational initiatives for the company.
On financial performance, Novavax reported in results released on August 6 that revenue for the second quarter of 2026 was $57 million. Revenue fell 76% from $239 million in the corresponding period of 2025. The company posted a net loss of $53 million, compared with net income of $107 million a year earlier. Under a separate licensing agreement announced on January 20, 2026, Novavax granted Pfizer access to its Matrix-M technology in exchange for an upfront payment of $30 million. The agreement includes potential additional development and sales milestone payments of up to $500 million.
Novavax said in an update issued on August 28 that its partners had secured approvals for the updated formulation of the Nuvaxovid vaccine for the 2026-2027 vaccination season. The approvals covered the United States, the European Union and Japan, among the key markets the company targets through its partners. The chief executive said the partnership model allows Novavax to collect royalties on partners' sales. He added that this was achieved "without maintaining our own commercial infrastructure." In market trading, NVAX shares closed at $11.26 on October 16, compared with a closing price of $12.82 on October 15, according to EL7 closing prices.
Novavax lists completion of the manufacturing technology transfer to Sanofi among its upcoming operational milestones, according to its second-quarter results. The company expects to complete the process in mid-2027. Completion of the transfer will trigger a $75 million milestone payment to Novavax, according to the company. On development, Novavax said in results released on May 6 that it had prioritized its vaccine candidate against Clostridioides difficile. The company identified 2027 as the earliest potential date for clinical testing of the vaccine candidate to begin.