Novavax Eases Uncertainty, Announces Job Cuts, Encouraging Data From COVID/Flu Combo Shot

Novavax Inc (NASDAQ:NVAX) announced a global restructuring and cost reduction plan, expected to reduce annual combined 2024 R&D and SG&A expenses by approximately 40% to 50% versus 2022.

The streamlining includes a workforce reduction of approximately 25%. Last month, Novavax's newly appointed CEO, John Jacobs, said the company would cut about $50 million in costs in Q1 of 2023 and plans further cuts.

For the first quarter, Novavax reported $81 million in total revenue — compared to $704 million for the same period in 2022 and the consensus of $87.61 million. 

The company reported a net loss of $(294) million, compared to a net income of $203 million a year ago.

Novavax released its FY23 revenue guidance of $1.4 billion-$1.6 billion, compared with market estimates of $831.6 million, after flagging significant uncertainty in March.

The company's cash and equivalents fell to $637 million at the end of the quarter from $1.3 billion as of Dec. 31. Novavax reported a Q1 EPS loss of $(3.41), compared to the consensus loss of $(3.46).

Concurrently, the company unveiled data for its COVID-influenza combination vaccine and two other shots.

Data from a Phase 2 trial in adults aged 50-80 showed that the combination shot produced an immune response comparable to its protein-based COVID vaccine and already approved influenza shots.

All three of Novavax's vaccine candidates - the COVID/flu combination shot, a standalone flu shot, and a higher dose of its COVID shot - were all safe and well-tolerated in the study.

Price Action: NVAX shares are up 24.60% at $9.29 during the premarket session on the last check Tuesday.

Photo by Jernej Furman via Flickr