Novavax stock plunges after quarterly earnings, but company sees hope in licensing deals

Published On Nov 12, 2024, 2:43 PM

Novavax reported a significant decline in quarterly revenues and adjusted its annual revenue guidance downwards. The company expects to earn between $650 million and $700 million this year, compared to an earlier estimate of $700 million to $800 million. For the quarter, revenues dropped to $85 million from $187 million a year ago, resulting in a loss of $0.76 per share, an improvement from a $1.26 loss per share a year prior. The company is focusing on licensing deals, particularly a $1.2 billion partnership with Sanofi to sell its COVID-19 vaccine, as it seeks to cut costs and develop new revenue streams through its adjuvant technology. Novavax is also looking to restart its clinical trials for a flu-COVID combination vaccine and will reduce its R&D spend in the coming years.