Novavax Sees FY23 Revenue Above Street, Plans 25% Job Cuts; Trial Result Positive; Stock Up

(RTTNews) - Novavax, Inc. (NVAX), while reporting a loss in its first quarter, compared to last year's profit, amid sharply lower revenues, on Tuesday provided fiscal 2023 total revenue guidance of between $1.4 billion and $1.6 billion, above market estimates.

The company also announced global restructuring and cost reduction initiative, including consolidation of facilities and infrastructure and approximately 25 percent reduction in global workforce.

Further, the company announced positive Phase 2 topline results for COVID-Influenza Combination, standalone influenza, and high-dose COVID vaccine candidates.

In pre-market activity on Nasdaq, Novavax shares were gaining around 8.5 percent to trade at $8.08.

For fiscal 2023, five analysts on average, polled by Thomson Reuters expect revenues of $831.6 million for the year. Analysts' estimates typically exclude special items.

The company projects full-year grant revenue between $340 million and $360 million, and product sales between $1.06 billion and $1.24 billion.

Regarding the global restructuring and cost reduction plan, the company said it is expected to reduce annual combined 2024 R&D and SG&A expenses by approximately 40 percent to 50 percent versus 2022.

For fiscal 2023, R&D and SG&A expense reductions are expected to be 20 percent to 25 percent versus 2022, based on timing of implementation, local laws and regulations and other factors, as adjusted to exclude one-time charges.