Novavax, Inc. (NVAX) Jefferies Global Healthcare Conference (Transcript)

Novavax, Inc. (NASDAQ:NVAX) Conference Call Summary Company Overview - Company: Novavax, Inc. - Event: Jefferies Global Healthcare Conference Call - Date: June 8, 2023 - Participants: Jim Kelly (CFO), Filip Dubovsky (CMO) Key Priorities 1. Updated Variant Vaccine: - Focus on making an updated variant vaccine available for the fall 2023 season, aligned with regulatory agencies and competitive in presentation and quantity [2][3] 2. Cost Reduction: - Aim to reduce spending and ensure a cash runway to transition from a pandemic to an endemic business model [2][19] 3. Technology Platform Value: - Highlight and create value from the technology platform, including promising early Phase 2 results for flu and malaria vaccines [2][4] Revenue Guidance - 2023 Revenue Guidance: $1.4 billion to $1.6 billion - Components: - Grant revenue: $340 million to $360 million - Product sales under Advanced Purchase Agreements (APAs): approximately $1 billion to $1.24 billion - $800 million linked to secured APAs - $350 million estimated for the U.S. market [5][6][7] Manufacturing and Delivery - Secured Delivery Schedules: - Recent renegotiations for approximately 20 million doses for Europe and additional negotiations with Australia and New Zealand [9][10] - Cash Runway: - Ended Q1 with $637 million in cash, with a plan to maintain a cash runway through the fall vaccination season [11][12] Regulatory and Market Strategy - VRBPAC Meeting: - Anticipation of strain selection for manufacturing, with ongoing dialogue between regulators and manufacturers [12][13] - Cross-Reactive Activity: - The vaccine's broad immune response is expected to perform well against prevalent strains [14][15] Cost Structure and Restructuring - Cost Reduction Plan: - Targeting a 40% to 50% reduction in R&D and SG&A expenses by 2024, with a 25% reduction in workforce [19][20] - Going Concern: - Addressing significant liabilities, including ongoing arbitration with Gavi, with a belief in the merits of their case [21][22] Pipeline and Future Opportunities - Pipeline Development: - Focus on advancing the flu and malaria vaccine candidates, with promising early results [24][25] - High-Dose COVID Vaccine: - Plans for a Phase 2 study to evaluate dosage levels for older adults [25][26] - Business Development: - Exploring partnerships while leveraging a validated technology platform [27][28] Conclusion - Outlook: - The next three to four months are critical for unlocking value, showcasing the protein-based vaccine, and validating the technology platform [29][30]