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Sep 30, 2023
Novavax Q3 2023 Earnings Report
Reported third quarter 2023 financial results and operational highlights.
Key Takeaways
Novavax reported Q3 2023 revenue of $187 million, compared to $735 million in the same period in 2022. The company is initiating an additional cost reduction program, targeting over $300 million in 2024.
Received authorization from the U.S. FDA and approval from the European Commission for the Company’s updated COVID-19 vaccine, and launched the only protein-based non-mRNA vaccine option.
Secured broad access to Novavax’s COVID-19 vaccine in the U.S.
R21/Matrix-M malaria vaccine received recommendation from WHO, resulting in initial sales of Matrix-M for launch.
Anticipate Phase 3 COVID-19-Influenza Combination vaccine trial to commence in 2024, with potential for accelerated approval and launch in 2026.
Novavax
Novavax
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CapyFin.com Forward Guidance
Novavax is updating its Full Year 2023 guidance and providing First Quarter 2024 total revenue guidance. The company anticipates reducing 2024 R&D and SG&A expenses and supply network costs.
Positive Outlook
- Full year 2023 and first quarter 2024 guidance reflects APAs based on committed dose delivery schedules of over $700 million.
- Secured new orders and U.S. market sales of $50 million to $150 million, subject to updated variant manufacturing and regulatory approvals.
- Expect some portion of revenue recognition will extend into the first quarter of 2024 due to the delayed start to and expectation for a longer season in the U.S.
- Some portion of APA dose deliveries may extend into the first quarter of 2024 outside of the U.S.
- Anticipate reducing 2024 R&D and SG&A expenses by over $200 million compared to prior targets to reflect $750 million or lower spend for 2024, representing a greater than 50% reduction compared to 2022.
Challenges Ahead
- Expect to deliver total revenue at low end of guidance range for season, when accounting for some revenue shifting into first quarter 2024.
- The first quarter 2024 total revenue guidance reflects the balancing amount to achieve our expected combined full year 2023 and first quarter 2024 product sales and total revenue.
- Previously expected no product sales in the first quarter of 2024.
- The company is prepared to initiate an additional cost reduction program to reduce 2024 expenses by over $300 million.
- Intend to further reshape the size and scope of global business operations beyond previously announced 2024 targets to align with the COVID-19 market opportunity.