Novavax FY Conference Summary Company Overview - **Company**: Novavax (NasdaqGS: NVAX) - **Event**: FY Conference held on March 03, 2026 Key Points Strategic Shift - Novavax has successfully pivoted from being solely focused on COVID-19 to a broader strategy that includes out-licensing its technology and expanding its R&D efforts [4][5] - The company aims to generate data to support its technology and expand the utility of its Matrix-M adjuvant platform, including new formulations like dry powder [4][5] Partnerships and Collaborations - Novavax has established partnerships with major pharmaceutical companies, including Sanofi and Pfizer, to utilize its Matrix technology in their vaccine development [5][6] - The company is seeing increased interest from potential partners, indicating a strong market demand for its technology [6] Upcoming Milestones - Key milestones for 2026 include feedback from Sanofi on clinical trials for combination vaccines and initial steps from Pfizer regarding their selected area for Matrix-M exploration [7][9] - New partnership announcements and data from Novavax's pipeline are also anticipated [9] Market Positioning - Nuvaxovid is well-positioned in the U.S. COVID vaccine market, with Sanofi leading commercialization efforts. The vaccine's tolerability profile is highlighted as a significant advantage [10][11] - Sanofi's proprietary distribution network and their methodical approach to building market share are expected to enhance Nuvaxovid's performance [12] Financial Outlook - Novavax has a strong financial position with a cash runway expected to last into 2028, supported by non-dilutive cash from partnerships and credit facilities [30] - The company aims for non-GAAP profitability by 2028, with potential contributions from milestones and royalties from vaccine sales [31][32] R&D Focus - Novavax is developing a portfolio of new adjuvants to enhance immune responses for difficult-to-treat diseases, including oncology [20][22] - The company is exploring the use of Matrix-M in oncology, emphasizing partnerships rather than becoming an oncology company itself [22] C. difficile Vaccine Development - Novavax is working on a C. difficile vaccine, addressing a significant unmet medical need as there is currently no vaccine on the market [23][24] - Early preclinical data for the C. difficile vaccine is promising, with a focus on generating mucosal immunity and durable immune responses [25][28] Cost Management - The company has significantly reduced its SG&A and R&D expenses from approximately $1.7 billion to a target of $200 million or below by 2028 [33][34] - This lean infrastructure is designed to support multiple partnerships and revenue generation opportunities [34] Future Expectations - Novavax plans to continue building partnerships with various pharmaceutical companies, aiming for multiple revenue streams through royalties and milestones [34][35] - The company is optimistic about achieving its financial and strategic goals, with a focus on transparency in future announcements [35] Conclusion - Novavax is positioned for growth through strategic partnerships, a diversified pipeline, and a strong financial outlook, with a focus on addressing unmet medical needs and achieving profitability by 2028.

Financial Data and Key Metrics Changes - The company reported total revenue of $1.1 billion for the full year 2025, a 65% increase year-over-year, including $625 million from non-cash revenue recognition related to Nuvaxovid agreements [30][31] - For Q4 2025, total revenue was $147 million, reflecting a 67% increase compared to Q4 2024 [31][36] - Positive income was reported for both the full year and Q4 2025, indicating improved financial performance [31][38] - Combined R&D and SG&A expenses were reduced by 42% and 53% for Q4 and full year 2025, respectively, while maintaining partnership commitments [32][38] Business Line Data and Key Metrics Changes - Nuvaxovid product sales for Q4 2025 were $20 million, with additional supply sales of $19 million from Matrix-M adjuvant sales [36] - Sanofi's licensing, royalty, and other revenue for Q4 2025 was $98 million, driven by milestone achievements and R&D reimbursements [36] Market Data and Key Metrics Changes - The company noted significant market share gains for Nuvaxovid in Japan, with Takeda achieving over 12% market share [9] - Over 30 million doses of the R21 Matrix-M malaria vaccine have been distributed by Serum Institute [9] Company Strategy and Development Direction - The company has shifted from a singular focus on COVID to a broader strategy that includes partnerships and R&D, aiming for long-term value creation [7][8] - A new partnership with Pfizer for Matrix-M was announced, which could generate billions in revenue through milestones and royalties [8][9] - The company is exploring new formulations and applications for Matrix-M, including potential uses in oncology and hard-to-treat infectious diseases [11][19] Management's Comments on Operating Environment and Future Outlook - The management acknowledged uncertainties in the current macro and regulatory environment for vaccine companies but remains optimistic about the long-term need for vaccines [13] - The company anticipates significant growth opportunities in the vaccine and immunotherapeutic markets, projecting a potential market size exceeding $100 billion by the early 2030s [20][21] Other Important Information - The company ended 2025 with $857 million in cash and accounts receivable, with an additional $80 million in non-dilutive cash expected in Q1 2026 [32][33] - A new credit facility of $330 million was established to support ongoing operations and growth strategy [33] Q&A Session Summary Question: Update on Sanofi's vaccine business with new CEO - Management expressed confidence in the ongoing partnership with Sanofi, noting that interactions remain positive despite leadership changes [51] Question: Prioritization of early pipeline programs - The company is advancing multiple early-stage programs, including C. diff, VZV, and RSV, each at their own pace [54][55] Question: Potential for co-promotions in partnerships - The company is currently focused on partnerships rather than building a commercial framework but remains open to co-promotions if a significant product emerges [60] Question: Timeline for MTAs to become formal partnerships - The timeline for MTAs to evolve into formal partnerships depends on the partners' development progress, with ongoing discussions and data generation [70][72]