Novavax's stock surged 7.64% during pre-market trading on Wednesday following activist shareholder demands for corporate actions aimed at enhancing shareholder value.

The price movement comes after Shah Capital, a significant shareholder, publicly urged the company to retire its outstanding $225 million convertible bond and/or launch a buyback of 10-20 million shares. Such measures are typically viewed favorably by investors as they can improve the company's capital structure and increase earnings per share.

In addition to the financial proposals, Shah Capital has also expressed intent to vote against the re-election of current board nominees and the executive compensation package at the upcoming annual general meeting, while advocating for a reduction in board size from eight to five members. These governance-related demands suggest a push for more efficient and shareholder-aligned leadership at the biotech firm.