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Novavax shares rise after vaccine maker posts surprise profit

Published 08/08/2023, 08:46 PM
© Reuters

Investing.com -- Shares in Novavax (NASDAQ:NVAX) rose in premarket U.S. trading Tuesday after the vaccine maker posted an unexpected profit in the second quarter.

The Maryland-based company reported earnings per share of $0.58 in the three months ended on June 30, rebounding from a per-share loss of $6.53 in the corresponding period last year. Analysts had estimated a loss of $1.52 per share.

Revenue also more than doubled to $424.4 million, topping projections of $237.4M. Speaking to CNBC, Chief Executive Officer John Jacobs said that some expected third quarter sales from prior COVID vaccine purchase agreements may have been recognized instead in the second quarter.

But Jacobs also flagged to CNBC that there could be "little to no sales" in the current quarter as Novavax awaits a approval on its new COVID shot from the Food and Drug Administration. The FDA is expected to deliver its decision in late September.

Novavax lowered its total annual revenue forecast to a range of $1.3B to $1.5B, down from its prior band of $1.4B to $1.6B.

Novavax previously warned in February of significant uncertainty around its 2023 sales, U.S. government funding, and arbitration with global vaccine group GAVI. Despite forecasting having a strong enough cash flow to fund its operations this year, the firm warned at the time of near-term risks that threatened its ability to stay in business.

But hopes remain that demand for a revised version of its COVID jab this autumn, as well as other vaccines in development and cost cuts, will ultimately support returns.

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