Novavax(US:NVAX) ZACKS·2025-05-09 13:55Core Viewpoint - Novavax reported a significant turnaround in its financial performance for Q1 2025, with earnings per share of $2.93, surpassing expectations and showing a substantial increase in revenue driven by product sales, particularly from COVID-19 vaccine agreements [1][2][7]. Financial Performance - Earnings per share for Q1 2025 were $2.93, compared to a loss of $1.05 per share in the same quarter last year [1]. - Quarterly revenues reached $667 million, a significant increase from $94 million in the prior year, exceeding the consensus estimate of $212 million [1]. - Product sales amounted to $622 million, up from $90 million year-over-year, primarily driven by $608 million from the COVID-19 vaccine Nuvaxovid [1][2]. Revenue Drivers - The increase in product sales was largely attributed to $603 million recognized from the termination of advanced purchase agreements (APAs) with Canada and New Zealand [2]. - Licensing, royalties, and other revenues totaled $45 million, up from $4 million in the previous year, mainly due to $40 million from Sanofi related to upfront payments and milestone amortization [3]. Cost Management - Research and development (R&D) expenses were $89 million, down 4% year-over-year, reflecting reduced expenditures on COVID-19 vaccine development [4]. - Selling, general, and administrative (SG&A) expenses decreased by 45% to $48 million, attributed to lower commercialization activities and cost-reduction efforts [4]. Cash Position - As of March 31, 2025, Novavax had $747 million in cash and cash equivalents, down from $938 million at the end of 2024 [5]. Future Guidance - Novavax has raised its adjusted revenue guidance for 2025 to between $975 million and $1.03 billion, significantly higher than the previous estimate of $300-$350 million [7]. - The company reaffirmed its full-year projection for combined R&D and SG&A expenses in the range of $475-$525 million [8]. Pipeline and Regulatory Updates - Novavax expects FDA approval for its COVID-19 vaccine regulatory filing and is in discussions to finalize study parameters for post-marketing commitments [9]. - The transfer of marketing authorization to Sanofi for the U.S. and EU markets is anticipated in Q4 2025, which will trigger additional milestone payments [10]. - The company has improved its partnership terms with Takeda Pharmaceuticals, receiving a $20 million upfront payment and potential future payments tied to vaccine sales [11]. Strategic Collaborations - Novavax has expanded its partnership with a top-tier pharmaceutical company to utilize its Matrix-M adjuvant and entered a preclinical collaboration for cancer vaccine development [12]. - The company initiated a late-stage program for a combination vaccine targeting influenza and COVID-19, with initial data expected in mid-2025 [13].