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Vaccine maker Novavax on Wednesday reported fourth-quarter revenue and earnings that missed Wall Street’s estimates and reiterated plans to cut costs as it fights to stay afloat.
Still, Novavax narrowed its losses in the quarter from the same period a year ago, even as demand for the biotech company’s Covid vaccine – its only marketable product – and other products that combat the virus continue to plummet worldwide.
Here’s what Novavax reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Loss per share: $1.44 vs. a loss of 45 cents expected
- Revenue: $291.3 million vs. $322 million expected
The company posted a net loss of $178.4 million, or $1.44 per share, for the quarter. That compares to a net loss of $182.2 million, or $2.28 per share, for the year-earlier quarter.
Novavax generated fourth-quarter sales of $291.3 million, down from the $357.4 million in the year-earlier period.
But Novavax CEO John Jacobs said the company had some revenue move from 2023 into 2024 due to the timing of some advance purchase agreements for doses of its Covid shot.
“I wouldn’t look at it as sales that were lost … but there’s much more of a timing element than anything else,” Jacobs told CNBC in an interview.
Novavax expects full-year 2024 revenue to come in between $800 million and $1 billion. That forecast reflects an expected $500 million to $600 million in revenue from dose deliver schedules from advanced purchase agreements and $300 million to $400 million from commercial market product sales, royalties and other revenue from the company’s “partner-related activity.”
Analysts surveyed by LSEG expect 2024 revenue of $969.6 million.
Novavax expects first-quarter revenue to come in at $100 million, which reflects the tail end of the current Covid vaccination season. The company previously expected $300 million in sales for the period.
Novavax reiterated its plans to slash more expenses this year as part of the global cost-cutting plan it launched last year.
The company plans to lower its combined research and development as well as selling, general and administrative expenses to a range of $700 million to $800 million in 2024.
Novavax already shaved down those combined expenses to $1.21 billion last year, down from the $1.69 billion it reported in 2022.
The company also reduced its operating expenses in 2023 by $1.1 billion, or 41%, compared to 2022. It also cut its workforce by 30% compared to the first quarter of 2023.
The results come a year after the biotech company first raised concerns about its ability to stay in business. Shares of Novavax fell more than 50% last year.
But the stock got a huge boost last week after it eliminated what some analysts considered one of the biggest uncertainties around the company.
On Thursday, Novavax said it will settle a bitter arbitration dispute with Gavi, a nongovernmental global vaccine organization, over a canceled Covid vaccine purchase agreement. Novavax could pay around $300 to $400 million to the organization, but the total amount may be less if Gavi decides to order more shots from the company over the next five years.
