(Reuters) – Novavax on Thursday swung to a first-quarter profit from a year-ago loss, helped by reduced costs related to the development and sale of its COVID-19 vaccines, its only product on the market.
Shares of the company rose 8.74% to $6.47 in premarket trading.
Novavax, whose protein-based shot uses an older technology, missed out on the pandemic vaccine windfall – enjoyed by rivals Moderna and Pfizer which make messenger RNA-based vaccines – due to manufacturing issues and regulatory hurdles.
Last month, the U.S. health regulator asked Novavax to produce more data on its COVID-19 vaccine if it gets full approval. The vaccine maker said talks with the agency on the proposed study design are ongoing.
The company wants to convert the vaccine’s emergency authorization granted in 2022 into a full approval that would allow for expanded use and help it compete against shots from rivals.
The approval will trigger a $175 million milestone payment from partner Sanofi.
The vaccine’s prospects were thrown into doubt after the U.S. Food and Drug Administration missed its April 1 deadline to approve the shot and U.S. Health and Human Services secretary Robert F. Kennedy Jr. attributed the delay to the shot’s composition in a CBS interview earlier that month.
The Maryland-based biotech has been banking on revenue from its Sanofi deal and vaccines in development. It signed a licensing deal worth at least $1.2 billion with the French drugmaker last year to hand over the rights to sell its vaccines in several markets, including the United States and Europe.
Novavax’s quarterly revenue rose to $667 million in the reported quarter, from $94 million a year ago, and comfortably surpassed analysts’ estimate of $343.85 million, according to data compiled by LSEG.
The sales boost was primarily driven by revenue recognition of $603 million following the termination of two advance purchase agreements and related to cash received in prior years.
The company sees adjusted total revenue for 2025 to be between $975 million and $1.03 billion, more than double from their prior expectations of between $300 million and $350 million. This excludes Sanofi sales and royalties.
Net income came in at $519 million for the quarter ended March 31, compared to a net loss of $148 million a year earlier.
(Reporting by Sriparna Roy in Bengaluru; Editing by Shailesh Kuber)
Comments