Novavax Q4 Loss Narrower Than Expected, Sales Beat Estimates

Novavax NVAX incurred a fourth-quarter 2024 loss of 51 cents per share, narrower than the Zacks Consensus Estimate of a loss of 75 cents. In the year-ago quarter, the company reported a loss of $1.44 per share.Revenues in the quarter amounted to $88.3 million, which beat the Zacks Consensus Estimate of $86 million. However, the top line declined 70% on a year-over-year basis.See the Zacks Earnings Calendar to stay ahead of market-making news.Year to date, Novavax stock has declined 9% against the industry’s 6% growth.Image Source: Zacks Investment ResearchMore on NVAX’s EarningsNovavax recorded $50 million in product sales, down 80% year over year. The downside was due to lower sales of the company’s protein-based COVID-19 vaccine (also its sole marketed product). This reported figure missed the Zacks Consensus Estimate of $77 million and our model estimates of $68 million.Licensing, royalties and other revenues were $38.5 million compared to $1.9 million in the year-ago period.Management did not record grant revenues during the quarter. The company reported about $38 million in grant revenues in the year-ago period.During the quarter, Novavax also recorded a gain of $52 million from the sale of its manufacturing facility in the Czech Republic to pharma giant Novo Nordisk NVO. This manufacturing facility was sold to NVO for $200 million, out of which $190 million has already been received in cash last year and the rest will be receivable later this year. Following the sale of this plant, NVAX expects savings in annual costs of nearly $80 million.NVAX’s Costs & Cash BalanceIn the reported quarter, research and development (R&D) expenses totaled $104 million, down 37% year over year. The downside was caused by a reduction in overall expenditures relating to COVID-19 vaccine development and manufacturing activities.Selling, general and administrative (SG&A) expenses were down 50% year over year to $78 million, primarily due to decreased COVID-19 vaccine commercialization activities and cost-reduction efforts.As of Dec. 31, 2024, the company had $938 million in cash and cash equivalents compared with $924 million as of Sept. 30, 2024.Full-Year 2024 ResultsIn 2024, Novavax generated revenues of $682.2 million, down 31% year over year.In the same period, management recorded a loss of $1.23 per share compared with a loss of $5.41 in 2023.NVAX’s 2025 GuidanceStarting this year, pharma giant Sanofi SNY markets Novavax’s COVID-19 vaccine and is also using it to develop novel COVID-19-influenza combination vaccines. Per the deal terms between the companies signed last year, NVAX received a payment of $570 million from SNY, which includes $70 million in equity investment. The company is also eligible to receive milestone payments of up to $700 million and royalties on sales (in the high teens to low twenties percent) of the COVID-19 vaccine from Sanofi.With Sanofi now responsible for marketing the company’s COVID-19 vaccine, Novavax has not issued a total revenue guidance for this year as it is ‘reliant on Sanofi's sales forecasts for certain revenue components.’ However, management expects to record licensing, royalties and other revenues in the $300-$350 million range, which mainly includes various milestone payments receivable from SNY throughout this year.Novavax expects its full-year combined R&D and SG&A expenses to be in the band of $475-$525 million.Updates on NVAX’s Pipeline & Other NewsAlongside the earnings release, CEO Jacobs stated that Novavax has shifted its focus from commercializing the COVID-19 vaccine to expanding its pipeline and exploring partnership opportunities for its vaccine candidates and the proprietary Matrix-M adjuvant technology.During the quarter, Novavax triggered the achievement of a $50-million milestone payment from Sanofi for completing the database lock of a pediatric clinical study on its COVID-19 vaccine. This cash payment is expected to be received in full in first-quarter 2025.In December, NVAX started a late-stage program to evaluate the safety and immunogenicity of its stand-alone influenza and COVID-19-influenza combination vaccines in adults aged 65 years and older. Initial data from this study is expected in mid-2025. Management intends to explore partnership opportunities for both vaccines to advance all future clinical development and commercialization activities.Novavax is also progressing well with its preclinical pipeline, which includes vaccines for RSV and H5N1 bird flu. It is also exploring RSV-combination options and new opportunities in diseases like varicella-zoster virus (shingles) and Clostridium difficile (C. Diff.) colitis. Management also intends to expand into the field of oncology.A regulatory filing is currently under the FDA’s review seeking full approval for the COVID-19 vaccine, with a final decision expected in April. If this filing is approved, it will trigger a $175 million milestone payment from Sanofi.Novavax, Inc. Price Novavax, Inc. price | Novavax, Inc. QuoteNVAX’s Zacks RankNovavax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sanofi (SNY): Free Stock Analysis Report Novo Nordisk A/S (NVO): Free Stock Analysis Report Novavax, Inc. (NVAX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks