Novavax shares rise as third quarter results top expectations

By Eleanor Laise

Vaccine maker reins in full-year sales outlook, looks to expand cost-cutting program

Novavax Inc. shares (NVAX) moved slightly higher premarket on Thursday after the company reported a narrower-than-expected third quarter loss but trimmed its 2023 sales guidance.

Novavax reported a net loss of $130.8 million, or $1.26 per share, compared with a net loss of $168.6 million, or $2.15 per share, in the year-earlier period. The FactSet consensus was a loss of $1.80 per share. Revenues totaled $187 million in the quarter, down from $734.6 million a year earlier, beating the FactSet consensus of $171 million.

The company cut its full-year 2023 sales outlook to a range of $900 million to $1.1 billion, from previous guidance of $1.3 billion to $1.5 billion.

Novavax's updated COVID vaccine was approved by the U.S. Food and Drug Administration in early October, several weeks after competing shots from Pfizer Inc. (PFE) and Moderna Inc. (MRNA) got the regulatory green light.

The company said Wednesday that it still has time this vaccination season to boost its market share. "With the delayed start of respiratory vaccinations, we believe we have yet to reach the midpoint of the vaccination season and, with early and encouraging signs of demand for our vaccine, we believe there remains opportunity to deliver doses and grow our share," John Jacobs, Novavax president and CEO, said in a statement.

Novavax said it is prepared to launch another round of cost-cutting to trim 2024 expenses by more than $300 million, adding to other reductions announced earlier this year. The company expects to cut 2024 research and development and selling, general and administrative expenses by more than $200 million compared to prior targets.

The additional cost-cutting moves come after competing vaccine makers Pfizer and Moderna Inc. have also launched efforts to rein in spending amid underwhelming demand for COVID products.

Like other vaccine makers, Novavax is also working on combination shots with the hope that they'll improve uptake of the COVID vaccine. Novavax said it expects to launch a late-stage trial of its experimental COVID and flu combination shot next year, with potential for accelerated approval and launch in 2026.

Novavax shares were up 1.5% premarket on Thursday and have dropped 34% in the year to date, while the S&P 500 SPX is up 14%.

-Eleanor Laise

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11-09-23 0850ET

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