In this illustration, the silhouette of a man holding a medical syringe and a vial is shown in front of the Novavax logo on the screen.
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Novavax Deep cuts to full-year revenue guidance on Monday, with the company expecting no new sales for the rest of 2022 in the US or from an international consortium called Covax Great representing low- and middle-income countries.
The Maryland biotech company cut its 2022 sales outlook by about 50% and now expects to generate $2 billion to $2.3 billion in revenue this year. Novavax had previously forecast revenue of $4 to $5 billion this year.
Novavax shares fell 33% in after-hours trading. The company posted a net loss of $6.53 per share and posted revenue of $186 million for the quarter, much lower than expectations.
“For quarterly revenue of $186 million, a significant shortfall both to first-quarter results and, as I said, to our expectations,” Chief Executive Stanley Erck told analysts. analysis in corporate earnings call. “We are currently predicting that we will have no new revenue in year 22 from the US. Or from Covax.”
Erck said Novavax was late to the U.S. market, where people are still overwhelmingly injecting Pfizer vaccines and Moderna injections. Novavax received U.S. authorization for Covid shots for adults 18 years of age and older earlier this summer, but 77% of people in that age group are fully immunized with Pfizer, Moderna and at To a lesser extent are the noses of Johnson & Johnson.
Erck said Novavax has struggled because its shots have yet to be approved for boosters or minors in the US, the core of the remaining Covid vaccination market in the US.
There has also been an increase in vaccine supply for Covax, Erck said, which has limited the alliance’s demand for vaccines from Novavax. Covax has struggled to distribute the inventory it holds to low- and middle-income countries, he said.
Novavax’s vaccine sales fell to $55 million in Q2 from nearly $585 million in the first half of the year. The company posted a net loss of $510.5 million overall in the second quarter compared with a net loss of $352.3 million in the same period last year — before its vaccine was authorized anywhere. Novavax posted first-quarter profits earlier this year.
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