Novavax(US:NVAX) Benzingaยท2025-05-08 17:31Core Viewpoint - Novavax Inc. reported significant growth in first-quarter 2025 sales, driven by the termination of Advance Purchase Agreements and increased product sales, indicating a positive turnaround for the company [1][4]. Financial Performance - First-quarter 2025 sales reached $667 million, a substantial increase from $94 million in the same period last year, surpassing the consensus estimate of $343.85 million [1]. - Earnings per share for the quarter were $2.93, a recovery from a loss of $1.05, exceeding Wall Street's estimate of 71 cents [3]. - Nuvaxovid sales amounted to $608 million, up from $82 million a year ago [4]. Revenue Breakdown - Licensing, Royalties, & Other Revenue for the first quarter was $45 million, boosted by $40 million from Sanofi related to upfront payments and milestone amortization [2]. - Cost of sales decreased to $14 million from $59 million year-over-year, while R&D expenses were reduced to $89 million from $93 million [5]. - SG&A expenses fell to $48 million from $87 million, reflecting cost reduction efforts [5]. Cash Position and Guidance - As of March 31, 2025, cash and equivalents stood at $747 million, down from $938 million at the end of 2024 [6]. - For 2025, Novavax anticipates adjusted total revenue between $975 million and $1.025 billion, significantly higher than the previous range of $300 million-$350 million [7]. Strategic Focus - The company is focused on optimizing its partnership with Sanofi, advancing new and existing partnership opportunities, and developing its early-stage organic pipeline [4]. - Novavax has transitioned lead commercial responsibility of Nuvaxovid to Sanofi for select markets starting with the 2025-2026 vaccination season [6]. Regulatory Outlook - Novavax believes its Biologics License Application is approvable based on discussions with the FDA, although there has been a delay in full approval [8]. Market Reaction - Following the earnings report, NVAX stock increased by 16.10%, reaching $6.91 [8].