Why Is COVID-19 Vaccine Maker Novavax Stock Plunging On Wednesday?

Wednesday, Novavax Inc NVAX reported fourth-quarter 2023 revenues of $291 million, down from $357 million a year ago, missing the consensus of $321.97 million. Total revenue for 2023 was $984 million, compared to $2 billion in the same period in 2022.

Net loss for the fourth quarter of 2023 was $178 million, compared to a net loss of $182 million a year ago.

Novavax’s fourth quarter EPS loss reached $(1.44), up from $(2.28) a year ago compared to the consensus of $(0.45).

The company expects to initiate a pivotal Phase 3 trial for the COVID-19-Influenza Combination (CIC) vaccine candidate in the second half of 2024, with the potential for accelerated approval and anticipated launch in 2026.

Novavax says restructuring resulted in approximately a 30% reduction in the workforce compared to the first quarter of 2023.

In May 2023, the company announced a global restructuring and cost reduction plan. Additionally, in January 2024, it announced an additional 12% reduction of the global workforce, comprised of an additional 9% reduction in the company’s full-time employees and the remainder comprised contractors and consultants.

Last week, Novavax said it reached a settlement with Gavi regarding the 2021 advance purchase agreement for Novavax’s prototype COVID-19 vaccine. The agreement brings the pending arbitration related to the advance purchase agreement to a close.

Guidance: Novavax forecasts fiscal year 2024 revenue of $800 million-$1 billion versus the consensus of $969.56 million, with combined R&D and SG&A expenses of $700 million-$800 million.

Full-year 2024 guidance reflects Advance Purchase Agreement (APA) expected dose delivery schedules of $500 million to $600 million and non-APA related revenue of $300 million to $400 million from a combination of commercial market product sales.

Novavax expects Q1 fiscal year 2024 revenue of approximately $100 million versus consensus of $292.33 million.

Novavax says the total potential contract value for APAs outstanding as of December 31, 2023, was over $1 billion related to expected dose deliveries for 2024 through 2026.

Price Action: NVAX shares are down 29.30% at $4.25 on the last check Wednesday.

Photo: Marco Verch from Flickr.