Mon. Sep 25th, 2023

A well being employee prepares a dose of the Novavax vaccine because the Dutch Well being Service Group begins with the Novavax vaccination program on March 21, 2022 in The Hague, Netherlands.

Patrick Van Katwijk | Getty Pictures

Share costs of Novavax jumped greater than 50% on Tuesday after the biotech firm unveiled promising new vaccine information and a broad cost-cutting push that features main layoffs. 

The bulletins are an indication of hope for traders after final quarter, when the corporate raised doubts about its capability to remain in enterprise and determined to not present full-year steering. Novavax’s share costs at the moment are up about 6% up to now this yr, giving it a market worth of almost $950 million.

Novavax is now betting on its price controls and new vaccines to assist it keep afloat, forecasting 2023 gross sales of $1.4 billion to $1.6 billion, in line with its first-quarter earnings report.

The Gaithersburg, Maryland-based firm mentioned its mixture vaccine focusing on Covid and the flu produced a powerful immune response towards the viruses and was nicely tolerated in a part two trial. Novavax shared related trial outcomes on its stand-alone flu vaccine and new high-dose Covid shot. 

The corporate’s Covid vaccine is its solely commercially out there product available on the market after 35 years in enterprise.

CNBC Well being & Science

Learn CNBC’s newest world well being protection:

Novavax additionally introduced a world cost-cutting plan, which is able to contain slashing 25% of the corporate’s workforce. Roughly 400 full-time equal employees shall be impacted, a Novavax spokesperson informed CNBC. 

The plan additionally includes consolidating the corporate’s amenities and infrastructure. 

Novavax expects the plan to scale back 2023 R&D and promoting, normal and administrative bills by round 20% to 25% in contrast with these prices in 2022. SG&A bills normally embrace the prices of selling, promoting and delivering an organization’s services and products.

The corporate reported R&D bills of $258 million and SG&A bills of $162 million final yr.

The plan can be projected to scale back 2024 R&D and SG&A prices by roughly 40% to 50% in contrast with 2022. 

Novavax CEO John Jacobs mentioned on an earnings name that the job cuts have been a “tough determination,” however a “mandatory one to place the corporate on a greater pathway in the direction of monetary energy and sustainability.” 

“Let me say that we deeply recognize the contributions made by these staff who’ve been adversely impacted right now,” he mentioned.

Novavax nonetheless reported a bleak first quarter that missed Wall Road’s income estimates.

The corporate posted first-quarter gross sales of $81 million, down from the $704 million it reported for a similar interval a yr in the past. Novavax mentioned the steep drop was attributable to “an rising seasonal sample” for Covid vaccines.

Analysts anticipated the corporate to rake in $87.6 million in income for the quarter, in line with Refinitiv survey.

Novavax reported a web lack of $294 million, or $3.41 per share, in contrast with web revenue of $203 million, or $2.56 per share, through the first quarter of 2022. Analysts estimated the corporate would submit a web lack of $3.46 per share, the Refinitv survey mentioned.

Novavax’s street to launching its Covid vaccine within the U.S. was rocky.

The corporate raced towards Pfizer and Moderna to develop the primary Covid vaccine early within the pandemic. However Novavax’s efforts have been hindered by manufacturing snags and regulatory glitches, inserting the corporate far behind its rivals. 

Novavax’s shot lastly received Meals and Drug Administration emergency use authorization final yr, however uptake has been sluggish. 

The FDA in October additionally signed off on Novavax’s Covid booster. However most Individuals had already opted for Pfizer’s and Moderna’s up to date omicron boosters by then. 

Novavax’s shot is the primary Covid vaccine to make use of protein know-how, a decades-old technique for combating viruses utilized in routine vaccinations towards hepatitis B and shingles. 

The shot works in a different way than its mRNA-based counterparts from Pfizer and Moderna however achieves the identical end result: educating your physique learn how to battle Covid.

By Admin

Leave a Reply