Biotech
Wednesday, February 28th, 2024 5:30 pm EDT
Key Points
- Novavax’s shares dropped over 20% after reporting Q4 revenue and earnings below Wall Street’s estimates, projecting flat or decreased full-year 2024 sales despite narrowing losses compared to the previous year.
- The company’s Q4 loss per share was $1.44 compared to the expected 45 cents loss, with revenue at $291.3 million versus the expected $322 million, and a net loss of $178.4 million.
- Novavax aims to increase market share by streamlining operations, focusing on retail pharmacies, introducing a pre-filled syringe option for its Covid vaccine, and planning to launch a combination vaccine for Covid and flu in 2026, amid cost-cutting measures to lower expenses and recent settlement of an arbitration dispute with Gavi.
Novavax faced a significant drop in shares, declining by over 20% after reporting fourth-quarter revenue and earnings that fell short of Wall Street expectations and predicting flat or decreased full-year 2024 sales. Despite narrowing losses compared to the previous year, the biotech company’s Covid vaccine demand decreased amid declining global demand for Covid-related products. In Q4, Novavax reported a net loss of $178.4 million, with revenue at $291.3 million, down from $357.4 million the previous year. Novavax attributed some revenue shift to 2024 due to vaccine purchase agreements’ timing. The company expressed disappointment over its U.S. Covid vaccine market performance, citing factors like the late entry of its updated shot and a smaller-than-expected market size. Novavax aims to increase market share by launching its next Covid shot early in September, focusing on retail pharmacies, and offering a pre-filled syringe option. Forecasts predict 2024 revenue between $800 million and $1 billion, with first-quarter revenue expected at $100 million. Novavax plans to further reduce expenses, targeting combined expenses of $700 million to $800 million in 2024. These cost-cutting measures align with the company’s focus on developing a combination vaccine for Covid and the flu, with plans to start late-stage trials in 2026. Novavax’s recent settlement with Gavi, a global vaccine organization, over a canceled Covid vaccine purchase agreement provided a boost to its stock, potentially resolving a significant uncertainty for the company’s future.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/28/novavax-nvax-earnings-report-q4-2023.html
