Activist hedge fund Shah Capital has called on the board of Novavax to pursue a sale, citing ongoing operational challenges and marketing missteps that have hindered the vaccine maker’s performance for a third consecutive year, according to a report by Reuters.

The report cites a letter shared with Reuters as revealing that the hedge fund, which holds a 7.2% stake and is Novavax’s second-largest shareholder, believes that the company’s vaccine platform would “have far greater potential in the hands of a large, capable pharma entity.”

Novavax said its board remains open to “credible options” that maximise shareholder value.

Shah Capital’s founder Himanshu Shah estimates that Novavax could be valued at around $5bn if acquired, significantly above its current $1.4bn market capitalisation. The firm previously halted a proxy campaign last year following Novavax’s licensing deal with Sanofi.

The fund criticised Novavax’s sluggish rollout of its protein-based Covid-19 vaccine, Nuvaxovid, which captured only 2% market share last season — far behind mRNA rivals Pfizer and Moderna. Shah attributed the shortfall to “persistent sales and marketing failures.”