Covid-19 vaccine maker Novavax Inc. slashed its sales forecast and said it’s ready to cut at least another $300 million in costs next year.
Novavax already announced a restructuring plan in May amid concerns about whether the company could stay in business as it faces a reversal of demand for Covid shots, its main product. As part of efforts to strengthen the company’s finances, it’s prepared to initiate a new cost reduction program to reduce 2024 expenses, Novavax chief executive officer John C. Jacobs said in its third-quarter report Thursday.
Novavax shares rose 4.4% in premarket trading as the company’s third-quarter loss per share and revenue were better than analysts expected.
The company has revised its fiscal year 2023 guidance to a new range of $900 million to $1.1 billion, citing the timing of product sales. Last quarter, the company expected a range of $1.3 billion to $1.5 billion.
Total revenue for the quarter slumped 75% to $187 million. Most of the sales came from grants and royalties, surpassing analysts’ expectations of $159 million.
The company’s updated vaccine recently won regulatory approval in the US and European Union amid a rocky rollout of competitors’ offerings. Unlike Pfizer Inc.’s and Moderna Inc.’s messenger RNA shots that teach cells to spark the creation of antibodies, Novavax’s shot stimulates the immune system with harmless versions of the spike protein that the virus uses to enter cells.
