Monday, September 26, 2022

Novavax cuts 2022 revenue guidance in half, stock tanks in after-hours trading


In this photo illustration a silhouette of a man holding a medical syringe and a vial seen displayed in front of the Novavax logo on a screen.

Cezary Kowalski | Lightrocket | Getty Images

Novavax deeply cut its full year revenue guidance Monday as sales of its Covid-19 vaccine slowed significantly in the second quarter.

The 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 previously forecast $4 billion to $5 billion in revenue for the year.

Novavax’s stock dropped 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, well below expectations.

CEO Stanley Erck said revenue tanked due to lack of demand in the U.S. market and from Covax, an international alliance that procures vaccines for low and middle income countries. Novavax is not expecting any new revenue from the U.S. market or Covax for the remainder of the year, Erck said.

Although Novavax received authorization for its vaccine in the U.S. earlier this summer, Erck said the company was late to the market and people are still overwhelmingly getting immunized with Pfizer and Moderna’s shots. He said Novavax has also struggled because its vaccine is not yet approved as a booster or for adolescents in the U.S. yet.

There was also a surge in vaccine supply to Covax which limited the alliance’s need for shots from Novavax, Erck said.

The Maryland biotech company’s Covid-19 vaccine sales slowed to $55 million in the second quarter from nearly $585 million in the first part of the year. CEO Stanely Erck said Novavax is gaining momentum in the third quarter with 23 million doses delivered so far. But the company acknowledged deliveries of some vaccine orders could be pushed to 2023.

The company suffered a net loss of $510.5 million overall in the second quarter compared to a net loss of $352.3 million in the same period last year — before its vaccine was authorized anywhere. Novavax turned its first quarterly profit earlier this year.

This is a developing story. Please check back for updates.

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