©Reuters.Novavax (NVAX) plunges 20% due to widening quarterly losses and soft guidance
Novavax (NASDAQ:) Shares plunged more than 20% ahead of the market open on Wednesday after the company reported lower-than-expected fourth-quarter results and guidance for the current quarter.
The company's fourth-quarter loss per share was $1.44, significantly worse than analysts' expectations for a loss of $0.45 per share. Revenue was $291 million, also below expectations of $321.97 million.
The company reported research and development (R&D) expenses of $164.7 million in the quarter, down 36% from the year-ago period, while analysts expected it to be $136.1 million.
Looking to the future, Novavax expects fiscal 2024 sales to be between $800 million and $1 billion, compared to the expected $970 million.
“2023 is a year of transition for Novavax as we make significant progress toward strengthening our financial profile, providing the only protein-based, non-mRNA COVID-19 vaccine option to the United States and the world, and positioning ourselves for the future. “We were able to focus our investments on expanding our product portfolio,” said John C. Jacobs, President and CEO of Novavax.
“We are looking forward to moving to the next chapter of our business journey as a leaner and more agile organization, improving commercial performance in 2024 and 2025, and diversifying revenue opportunities with the expected launch of a combination vaccine in autumn 2026. I am trying my best.”
