Novavax (NASDAQ: $NVAX) is an American biotech company that focuses on developing vaccines to stop infectious diseases. One of its vaccines, Nuvaxovid, was approved in the European Union in 2021.
On Wednesday, February 26, 2024, the company announced its Q4 and fiscal year 2023 earnings.
Novavax Q4 And Full Year Results
Novavax reported a net loss of $178.4 million, or $1.44 per share, in Q4, below analysts’ estimate of $0.44. Moreover, the fourth quarter’s revenue was $291.3 million, below the expected $322 million, down by 22.69% compared to the previous year. The revenue for FY23 is down 50% compared to the previous year, totalling $1.0 billion.
Novavax Guidance
The company anticipates the revenue for 2024 to be flat or lower than 2023, guiding around $800M to $1.0 billion.
They also announced a resolution to their dispute with Gavi concerning their 2021 advance purchase agreement, eliminating financial uncertainties and allowing both parties to concentrate on their mutual public health objectives.
Novavax CEO Comments
The CEO and President of Novavax, John C. Jacobs, said, “2023 was a transition year for Novavax and we have made tremendous progress towards strengthening the financial profile of the Company, delivering the only protein-based non-mRNA COVID-19 vaccine option to the U.S. and globally, and focusing our investment on the future expansion of our product portfolio.”
He added, “Moving into the next chapter of our business journey as a more lean and agile organization, we are laser focused on improving our commercial performance in 2024 and 2025 and diversifying our revenue opportunity with our potential combination vaccine launch which we expect in the fall of 2026.”
However, the CEO also said in the earnings call on Wednesday that the company is “disappointed” with the performance of its Covid-19 vaccines in the US last season.
Chief Operating Officer of Novavax, John Trizzino, said, “Several factors, such as the later entry of Novavax’s updated Covid shot last fall, affected the company’s ability to gain Covid vaccine market share in the U.S.”
Trizzino also mentioned that Novavax would work to improve the market share in 2024 by rolling out company COVID-19 vaccines in early September and streamlining its customer engagement teams to prioritize retail pharmacies.
The company will also cut its research and development as well as administrative, selling, and general expenses between $700 million and $800 million for this year.
Stock Update: $NVAX
The stock slumped more than 20% on Wednesday morning after the release of worse-than-expected fourth-quarter earnings. $NVAX is currently trading at $4.4050, down by 26.7%. At the time of writing, the market cap is $508.433 million, with a volume of 25,117,411.
Is $NVAX Worth Buying in 2024?
Novavax expects revenue for 2024 to be flat or lower than 2023, which has led to a negative reaction from the market. Therefore, investors should not expect any meaningful return in the medium term. However, on a positive note, the company has settled its dispute with Gavi, which raises the prospects for positive long-term growth.
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