Novavax (NASDAQ:NVAX) shares plunged 13.8% premarket Thursday after the vaccine maker reported second-quarter results that missed analyst expectations and lowered its full-year revenue guidance.
The company posted adjusted earnings per share of $0.99, falling short of the $1.67 consensus estimate. Revenue came in at $415 million, below the $464.83 million analysts were expecting and down slightly from $424 million in the same quarter last year.
Novavax slashed its 2024 total revenue forecast to a range of $700 million to $800 million, down from its previous outlook of $970 million to $1.17 billion. The company also now expects product sales of $275 million to $375 million for the year, down from $400 million and $600 million.
"This is an exciting time for Novavax, and we have been keenly focused on evolving our operating model to leverage our key drivers of value," said CEO John Jacobs, striking an optimistic tone despite the disappointing results.
The company highlighted its recent partnership with Sanofi, which provided a $500 million upfront payment and approximately $70 million equity investment. Novavax recognized $391 million in revenue from the Sanofi deal in Q2.
Looking ahead, Novavax plans to initiate Phase 3 trials for its COVID-19-Influenza combination vaccine and standalone influenza vaccine in Q4 2024, with data expected by mid-2025. The company is also on track with its cost reduction efforts, targeting full-year combined R&D and SG&A expenses below $500 million for 2025.
Novavax ended the quarter with $1.1 billion in cash and equivalents, up from $584 million at the end of 2023, bolstered by the Sanofi partnership proceeds.