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]

Core Viewpoint - Shah Capital, the second-largest shareholder of Novavax, is urging the company's board to consider strategic changes, including a potential sale, and has indicated the possibility of initiating a proxy fight if no progress is made [1] Group 1 - Shah Capital is pressing for strategic changes at Novavax [1] - The potential sale of Novavax is being considered as part of the strategic changes [1] - A proxy fight may be launched by Shah Capital if the board does not take action [1]

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]

Financial Performance & Strategy - Total revenue for Q3 2025 was $70 million, a decrease of 18% compared to $85 million in Q3 2024[25] - The company achieved $1.1 billion in non-dilutive funding over the past 8 quarters[14] - Novavax is aiming for Non-GAAP profitability as early as 2028, driven by diversified revenue streams[15] - Combined R&D and SG&A expenses for Q3 2025 decreased by 18% compared to Q3 2024[22] - The company anticipates combined R&D and SG&A expenses less partner reimbursement of approximately $350 million for FY 2026 and $250 million for FY 2027[35] Sanofi Partnership - Sanofi revenue in Q3 2025 was $48 million, including $4 million in COVID-19 royalties[23, 28] - Novavax expects $60 million in cash from Sanofi by Q1 2026 related to the COVID-19 commercial role transition[23] - The Sanofi partnership is projected to result in $230 million in operating cost savings over 11 years[23] 2025 Financial Outlook - Adjusted Total Revenue for full year 2025 is projected to be between $1040 million and $1060 million[39] - Nuvaxovid product sales are expected to be $610 million for full year 2025, including $603 million from the termination of the Canada and New Zealand Advance Purchase Agreements[39] Pipeline Development - The company is advancing an early-stage pipeline focused on diseases with high unmet medical needs, including Varicella Zoster Virus (Shingles), C difficile, RSV combinations, and Pandemic Flu[14, 19]

Revenue Performance - Total revenue for Q3 2025 was $70 million, down 18% from $85 million in Q3 2024[12] - Total revenue for Q3 2025 was $70.445 million, a decrease of 16.6% compared to $84.512 million in Q3 2024[30] - Product sales in Q3 2025 were $13.442 million, down from $41.528 million in Q3 2024, representing a decline of 67.6%[30] - Licensing, royalties, and other revenue increased to $57.003 million in Q3 2025 from $42.984 million in Q3 2024, a growth of 32.5%[30] - Full Year 2025 revenue guidance is projected between $1,040 million and $1,060 million[18] Expenses and Losses - Research and development (R&D) expenses for Q3 2025 were $98 million, up from $87 million in Q3 2024[16] - Selling, general, and administrative (SG&A) expenses decreased by 55% to $32 million in Q3 2025, compared to $71 million in Q3 2024[16] - Total expenses for Q3 2025 were $248.463 million, up from $218.530 million in Q3 2024, an increase of 13.7%[30] - Net loss for Q3 2025 was $202 million, compared to a net loss of $121 million in Q3 2024[16] - Net loss for Q3 2025 was $202.379 million, compared to a net loss of $121.300 million in Q3 2024, reflecting a worsening of 66.9%[30] Cash and Assets - Cash and cash equivalents were $778 million as of September 30, 2025, down from $938 million as of December 31, 2024[16] - Cash and cash equivalents decreased to $268.023 million as of September 30, 2025, from $530.230 million at the end of 2024[32] - Total assets decreased to $1.179 billion as of September 30, 2025, down from $1.560 billion at the end of 2024[32] - Working capital improved to $544.721 million as of September 30, 2025, compared to a deficit of $25.474 million at the end of 2024[32] - The company reported an impairment of assets held for sale amounting to $97.038 million in Q3 2025[30] Partnerships and Future Outlook - Sanofi partnership milestones achieved year-to-date totaled $225 million, including $50 million earned in Q4 2025[4] - The company expects approximately $230 million in future cost savings from Maryland site consolidation transactions[4] - The FDA approved the Nuvaxovid 2025-2026 Formula for COVID-19 prevention in high-risk individuals in August 2025[8] - Novavax is focusing on expanding its clinical pipeline and expects to advance its product candidates, including new Matrix formulations[29] Nuvaxovid Sales - Nuvaxovid sales were $0 million in Q3 2025, a decrease of $38 million compared to $38 million in Q3 2024[9]

Core Insights - Novavax reported a total revenue of $70 million for Q3 2025, a decrease of 18% compared to $85 million in Q3 2024, primarily due to a significant drop in Nuvaxovid sales [3][7][23] - The company is focusing on optimizing partnerships, particularly with Sanofi, and enhancing its technology platform to drive long-term growth and profitability [2][5][20] Financial Performance - Nuvaxovid sales were $0 in Q3 2025, down from $38 million in Q3 2024, while supply sales increased to $14 million from $3 million [3][7] - Product sales decreased by 68% to $13 million from $41 million year-over-year [3][7] - Sanofi partnership revenue increased by 33% to $48 million from $36 million [3][7] - Total expenses for Q3 2025 were $248 million, compared to $219 million in Q3 2024, with R&D expenses rising to $98 million from $87 million [7][23] Strategic Initiatives - The company achieved $225 million in milestones from its partnership with Sanofi year-to-date, including $50 million from marketing authorization transfers [5][6] - Sanofi reported positive Phase 1/2 data for Nuvaxovid in combination with its influenza vaccines, which received Fast Track designation from the FDA [6][20] - Novavax is pursuing government funding for a pandemic influenza vaccine candidate and exploring its Matrix-M platform technology in oncology [6][20] Future Guidance - Novavax raised its full-year 2025 revenue framework, expecting adjusted total revenue between $1,040 million and $1,060 million [9][10] - The company anticipates combined R&D and SG&A expenses of $505 million to $535 million for the full year 2025 [8][10] - The transition of lead commercial responsibility for Nuvaxovid to Sanofi is expected to impact revenue forecasts, which are not included in the full-year guidance [9][15]

Core Viewpoint - Novavax has raised its annual revenue forecast for the third time this year, driven by milestone payments from vaccine supply and licensing agreements, particularly with Takeda Pharmaceuticals in Japan [1] Group 1 - The company has increased its revenue outlook, indicating strong performance and confidence in its vaccine-related business [1] - The adjustments in revenue forecast are attributed to successful partnerships and agreements in the vaccine sector [1]