Novavax Plans to Cut $50 Million in Costs, COVID-19 Vaccine Remains Only Marketed Product

Benzinga -

• Novavax Inc's (NASDAQ: NVAX) CEO, newly appointed CEO John Jacobs, said the company would cut about $50 million in costs in Q1 of 2023 and plans further cuts.
• "We're looking at everything from buildings, leases, land, headcount, and contractors, every aspect of our company and the way we work," Jacobs said in an interview with Reuters.
• Jacobs also said the company is in regular talks with the FDA over the potential design of its 2023 COVID-19 booster shot and believes Novavax will have a new shot ready in time for the fall.
• The company appointed John Jacobs, President & CEO following the retirement of Stanley Erck, who served as President & CEO for 12 years.
• Also Read: FDA's Regulatory Delay is The Reason For Novavax, Lucira Health's Failure
• Novavax's COVID-19 vaccine is its only marketed product after 35 years in business, the report added.
• The CEO added that the company did not expect to launch its individual flu vaccine this year and will focus on the COVID vaccine.
• Jacobs said Novavax would seek funding for its COVID/influenza combination shot, depending on whether the upcoming data is positive.
• In February, when the company released its fiscal 2022 earnings, it said, "substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued."
• Novavax's Q4 revenue increased 61% year-over-year to $357 million, which missed average analyst estimates of $383.14 million.
• In its 10K filing, the company said the U.S. government did not extend its agreement with Novavax beyond December 2023, putting some of the remaining $416 million in that deal at risk.
• Novavax also said that depending on the outcome of its arbitration with Gavi, it could be required to refund all or a portion of the $697.4 million it received from the group.
• Price Action: NVAX shares are up 1.44% at $9.16 during the premarket session on the last check Thursday.
• Photo by Jernej Furman via Flickr

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