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Mar 31, 2023
Novavax Q1 2023 Earnings Report
Announced first quarter 2023 financial results, reflecting a shift to seasonal demand and progress on updated COVID vaccine development.
Key Takeaways
Novavax reported Q1 2023 revenue of $81 million, a significant decrease from $704 million in Q1 2022, reflecting a shift to seasonal demand for COVID vaccines. The company announced a global restructuring and cost reduction initiative, aiming for a 40% to 50% reduction in R&D and SG&A expenses by 2024 compared to 2022. Despite a net loss of $294 million, Novavax is on track to deliver an updated COVID vaccine for the Fall season and announced positive Phase 2 topline results for its COVID-Influenza Combination, standalone influenza, and high dose COVID vaccine candidates.
Total revenue for Q1 2023 was $81 million, down from $704 million in the same period in 2022, due to seasonal demand.
Announced global restructuring and cost reduction initiative expected to reduce 2024 R&D and SG&A expenses by approximately 40% to 50% compared to 2022.
Provided full year 2023 total revenue guidance of between $1.4 and $1.6 billion.
Net loss for the first quarter 2023 was $294 million, compared to a net income of $203 million in the same period in 2022.
Novavax
Novavax
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CapyFin.com Forward Guidance
Novavax projects full year 2023 total revenue to be between $1.4 billion and $1.6 billion. They anticipate combined R&D and SG&A expenses of between $1.3 billion and $1.4 billion, excluding one-time restructuring costs.
Positive Outlook
- Full Year 2023 Total Revenue between $1.4 billion and $1.6 billion
- Grant Revenue between $340 million and $360 million
- Product Sales between $1.06 billion and $1.24 billion
- Secured a $100 million payment in the second quarter of 2023 related to a negotiated APA
- Reducing outstanding current liabilities
Challenges Ahead
- Anticipated restructuring charge of $10 million to $15 million related to employee severance and benefit costs
- Potential costs associated with a Phase 3 Flu/CIC program
- Challenges satisfying safety, efficacy, and product characterization requirements
- Difficulty obtaining scarce raw materials and supplies
- Potential for an unfavorable outcome in disputes, including the pending arbitration with Gavi