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

Novavax Inc 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

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: BiotechEarningsLarge CapNewsGuidanceHealth CareSmall CapMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!