Novavax, Inc. ( NVAX ) managed to report a 3Q25 GAAP EPS loss of –$1.25, missing estimates by $0.33. Revenue came in at $70.45 million, which actually beat expectations by $25.58 million despite falling 16.6% year over year. The company also reiteratedI hold a Master’s degree in Cell Biology and began my career working for several years as a lab technician in a drug discovery clinic, where I gained extensive hands-on experience in cell culture, assay development, and therapeutic research. That scientific fo ...

Novavax, Inc. (NASDAQ:NVAX) ranks among the most oversold biotech stocks to invest in. Novavax, Inc. (NASDAQ:NVAX) announced its third-quarter 2025 financial results on November 6, emphasizing the company’s continuous strategic shift from a direct COVID-19 commercial operation to an R&D-focused company, especially in partnership with Sanofi. For the third quarter, Novavax, Inc. (NASDAQ:NVAX) reported total revenue of $70 million, an 18% drop from $85 million during the same period the previous year. Mean ...

Question-and-Answer SessionAbsolutely. Welcome you. Okay. So Jim, if you can just give us a little bit kind of an overview of the Novavax today. I think it's different from last year for sure, and then the very big strategic focus for the new Novavax. And then why don't you give us an overview?James KellyExecutive VP, CFO & Treasurer Right. Fantastic. So thanks, everyone, for joining us today. For many of you, you may be familiar with Novavax from our most recent history during the pandemic. One of the very ...

Novavax Conference Call Summary Company Overview - Novavax is recognized for its successful development of a highly efficacious COVID-19 vaccine using subunit protein nanoparticle technology combined with the Matrix-M adjuvant, which has also been utilized in a malaria vaccine developed by Serum Institute of India [4][5] Strategic Focus - The company is transitioning from a pandemic-focused entity to an endemic-based vaccine manufacturer, partnering with Sanofi to integrate its COVID-19 vaccine, Nuvaxovid, into Sanofi's portfolio of vaccines [5][6] - Novavax aims to reduce costs, strengthen its balance sheet, and advance its pipeline through partnerships, with a long-term goal of achieving profitability and diversified revenue streams [6][9] Partnership with Sanofi - The partnership with Sanofi is structured in layers, including commercialization of the COVID-19 vaccine, development of combination vaccines, and leveraging Matrix-M in Sanofi's portfolio [9][10] - The market for combination flu and COVID-19 vaccines could reach $8 billion annually, with Novavax eligible for up to $350 million in milestones and royalties ranging from high single digits to low teens [10][11] - Sanofi's 2026 season is expected to be the full launch year for the COVID-19 vaccine, with 2025 serving as a transition year for learning and marketing efforts [12][13] Financial Highlights - Novavax received a $70 million investment from Sanofi, $500 million upfront, and has the potential for $700 million in milestone payments [22][23] - In the current year, Novavax earned $225 million in milestones, with royalties expected to grow significantly as the partnership matures [23] Matrix-M Adjuvant - Matrix-M is positioned as a critical driver of innovation in the vaccine industry, with potential royalties of mid-single digits for up to 20 years on new vaccines developed using this adjuvant [25][26] - The global vaccine market is projected to grow from $57 billion in 2024 to over $75 billion by 2030, highlighting the significant opportunity for Matrix-M [25] Early Stage Pipeline - Novavax is exploring various early-stage vaccines targeting infectious diseases, including CDIF, shingles, RSV, and pandemic flu, with a focus on addressing unmet medical needs [38][39] - The company is also investigating the use of Matrix-M in oncology vaccines, collaborating with partners to explore its potential in this area [34][41] Market Potential - The oncology vaccine market is valued at over $40 billion, contributing to a combined market potential exceeding $100 billion when combined with the vaccine market [34] - Novavax's approach includes leveraging AI and machine learning to enhance immune responses and develop tailored vaccines for specific needs [33][41] Conclusion - Novavax is strategically positioned to capitalize on its innovative technologies and partnerships, with a clear focus on expanding its vaccine portfolio and driving long-term value creation through diversified revenue streams and cost management [6][23][25]

Core Viewpoint - Shah Capital, the second-largest shareholder of Novavax, is urging the biotechnology company to make strategic adjustments, including a potential sale, due to dissatisfaction with the weak sales of its COVID-19 vaccine [1] Group 1: Shareholder Actions - Shah Capital has increased its stake in Novavax from 7.2% in October to approximately 8.3% [1] - The shareholder has warned that if there is no progress within the next four months, it may initiate a proxy fight [1]

Shah Capital, Novavax's second-largest shareholder, is pressing the biotech's board to pursue strategic changes, including a potential sale, and warned it could launch a proxy fight if no progress is ... ...

Core Viewpoint - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may be blocked from proceeding if an ad-blocker is enabled [1]

Core Insights - Novavax reported a narrower loss of 62 cents per share in Q3 2025, compared to the Zacks Consensus Estimate of a loss of $1.08 per share and a loss of 79 cents per share in the same quarter last year [1][7] - Quarterly revenues reached $70 million, down 18% year-over-year, but exceeded the Zacks Consensus Estimate of $40 million [2][7] - The company raised its 2025 revenue guidance to between $1.04 billion and $1.06 billion, up from the previous estimate of $1.00 billion to $1.05 billion [10] Financial Performance - Novavax's product sales were $13 million, a significant decrease from $41.5 million in the prior year, with no revenue generated from its COVID vaccine Nuvaxovid during the quarter [3] - Licensing, royalties, and other revenues totaled $57 million, including a $48 million milestone payment from Sanofi, marking a 33% increase year-over-year [4] - Research and development (R&D) expenses were $98 million, up 12.6% year-over-year, while selling, general, and administrative (SG&A) expenses decreased by 55% to $32 million [8] Cash Position - As of September 30, 2025, Novavax had $778 million in cash and cash equivalents, an increase from $628 million as of June 30, 2025 [9] Strategic Developments - Novavax completed the transition of the COVID vaccine's commercial leadership to Sanofi for the 2025-2026 vaccination season [4] - The company amended its collaboration and license agreement with Sanofi to expand the use of its Matrix-M adjuvant in pandemic influenza vaccine candidates [11][12] - Novavax received an additional $50 million in milestone payments due to the transfer of marketing authorization for Nuvaxovid to Sanofi in the U.S. and EU [13][14] Market Performance - Shares of Novavax have declined by 5.6% year-to-date, contrasting with an 11.4% rise in the industry [5]

Core Insights - Novavax reported a quarterly loss of $0.62 per share, which was better than the Zacks Consensus Estimate of a loss of $1.08, representing an earnings surprise of +42.59% [1] - The company generated revenues of $70.45 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 77.85%, although this was a decline from $84.51 million in the same quarter last year [2] - Novavax has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Financial Performance - The earnings surprise of +42.59% indicates a significant improvement compared to the previous year's loss of $0.76 per share [1] - The company has shown a strong performance in revenue estimates, topping consensus expectations four times in the last four quarters [2] Stock Performance - Novavax shares have declined approximately 4.4% since the beginning of the year, contrasting with the S&P 500's gain of 15.6% [3] - The current Zacks Rank for Novavax is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.33 on revenues of $125.59 million, while for the current fiscal year, it is $2.23 on revenues of $1.07 billion [7] - The outlook for the Medical - Biomedical and Genetics industry, where Novavax operates, is currently in the top 41% of Zacks industries, indicating a favorable environment for potential stock performance [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was reported at $70 million, a decrease from $85 million in Q3 2024 [23][25] - The company recorded a net loss of $202 million, or $1.25 per diluted share, for the third quarter of 2025 [27] - Cash and accounts receivable at the end of Q3 2025 stood at $812 million, prior to factoring in additional earnings from recent transactions [25] Business Line Data and Key Metrics Changes - Product sales for Q3 2025 amounted to $13 million, primarily from COVID-19 vaccine and Matrix-M supply sales [25] - Licensing royalties and other revenue reached $57 million, mainly from the Sanofi agreement, including $46 million in R&D reimbursement [26] Market Data and Key Metrics Changes - Sanofi recorded $23 million in Nuvaxovid sales in Q3 2025, with Novavax earning $4 million in royalties from these sales [23][25] - The company anticipates a significant increase in royalties from Sanofi in 2026 as they prepare for a full commercial launch [32] Company Strategy and Development Direction - The company is transitioning from a focus on COVID-19 vaccine sales to a diversified pipeline and partnerships, aiming for long-term growth and profitability [5][7] - Key priorities for 2025 include optimizing the partnership with Sanofi, enhancing existing partnerships, and advancing the technology platform and early-stage pipeline [10][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving non-GAAP profitability as early as 2028, contingent on successful partnerships and product developments [10][54] - The company is focused on reducing costs and improving financial strength while navigating a transition year with Sanofi [24][54] Other Important Information - The company has secured $1.4 billion in new cash while reducing its cost structure and liabilities, with 78% of this cash coming from non-dilutive sources [30] - A significant milestone of $225 million from Sanofi has been achieved, consistent with the 2025 revenue framework [25][30] Q&A Session Summary Question: How does the company see the 2025 COVID season compared to last year? - Management noted a 20% decrease in prescriptions compared to last year, attributing this to a more restrictive policy in the U.S. [41] Question: Can you provide more details on the BARDA grant? - The BARDA grant awarded to Sanofi is for early-stage work on a pandemic influenza vaccine that includes Novavax's Matrix-M adjuvant [43] Question: What are the next steps for the Sanofi collaboration? - Management is excited about the positive data from Sanofi's combination programs and is awaiting further updates on regulatory engagement [46] Question: What is the clinical bar for success for the shingles vaccine? - The company is confident in its data and is conducting experiments with positive controls to ensure comparability with existing vaccines [74][75]