Novavax, Inc. NVAX reported a fourth-quarter 2023 loss of $1.44 cents per share, much wider than the Zacks Consensus Estimate of a loss of 49 cents. In the year-ago quarter, the company reported a loss of $2.28 per share.

Revenues in the quarter amounted to $291.3 million, also missing the Zacks Consensus Estimate of $334.0 million. The top line declined 18.5% on a year-over-year basis.

Quarter in Detail

In the reported quarter, the company recorded $251.4 million in product sales, reflecting a decrease of 12.6% on a year-over-year basis. The reported product sales beat our model estimates of $246.5 million.

Grant revenues declined 45.4% year over year to $37.9 million for the same period.

Novavax recorded $1.9 million of revenues from royalties and adjuvant sales to licensing partners compared with the year-ago quarter’s revenues of $.04 million.

In the reported quarter, research and development (R&D) expenses were $165 million, down almost 36% year over year. The downside can be attributed to a reduction in clinical and manufacturing spending during the quarter.

Selling, general and administrative (SG&A) expenses were down 4.3% year over year to $155 million.

As of Dec 31, 2023, Novavax had $584 million of cash and cash equivalents compared with $666 million as of Sep 30, 2023. The company sold its common stock through at-the-market offerings, wherein it raised $110 million in net proceeds during the quarter.

Shares of Novavax were down 26.7% on Feb 28 following the announcement of the earnings result. The stock has plunged 36.9% in the past year compared with the industry’s decrease of 6.1%.

Image Source: Zacks Investment Research

Full-Year Results

In 2023, Novavax generated revenues of $983.7 million compared with $1.9 billion recorded in 2022.

In the same period, the company recorded a loss of $5.41 per share compared with a loss of $8.42 in 2022.

2024 Guidance

Novavax expects total revenues in the range of $800 million to $1 billion in 2024. The Zacks Consensus Estimate for the metric currently stands at $1.11 billion.

In the first quarter of 2024, total revenues are expected to be around $100 million.

Novavax’s shares were down as investors were not too impressed with the timid revenue outlook.

The company expects its full-year combined R&D and SG&A expenses in the band of $700-$800 million.

Pipeline Updates

In January 2024, Novavax announced that it has decided to reduce its global workforce by 12%. This includes a 9% reduction in its full-time employees, and the remainder is comprised of contractors and consultants.