Novavax Stocks Rebound after Reporting Q3 Earnings Results

Stocks of Novavax Inc. rebounded in after-hours trading after it reported its third-quarter earnings results. 

Accordingly, the biotech company surged 6.46% or 11.59 points to $191.00 per share. It also reversed its sharp plunge of 8.09% or 15.79 points to $179.41 per share on Thursday. 

In the latest quarterly report, Novavax revenue edged up 14.00% to $178.80 million from $157.00 million in the same period last year.  

However, it missed the market forecast of $334.62 million by 47.00%.

Still, the company explained that the slight gain from a year ago was due to the increased development activities relating to its COVID vaccine.  

Meanwhile, it posted a net loss of $4.31 per share, higher than the $3.21 per share, for the third quarter of 2020. It also exceeded the market estimate of a $4.04 loss. 

Consequently, research and development expenses rose to $408.20 million year-over-year from the previous figure of $294.10 million. 

Then, general and administrative expenses climbed to $77.80 million from $56.90 million in 2020. 

Furthermore, Novavax holds $1.90 billion in cash as of September 30, higher than its $0.80 billion last December 31, 2020. 

The gain in cash was primarily from the $1.20 billion in payments under advance purchase agreements and $565.00 million net proceeds.

Subsequently, in the recent earnings call, Novavax CEO Stanley C. Erck reassured investors that the firm is prepared to deliver its vaccine globally.

In addition, he stated that its Indian partner Serum Institute already produced “tens of millions” of doses ready for shipment.

Also, Novavax mentioned that it remains on track to apply for the US FDA approval by the end of the year.

Novavax on course to WHO Emergency Use Approval

On Thursday, Novavax announced that it had completed the submission process for the emergency use listing of its COVID-19 vaccine with the World Health Organization.

Accordingly, the company successfully complied with all modules required for the evaluation of its NVX-CoV2373 vaccine. 

Additionally, the announcement came a day after it received its first emergency use authorization from Indonesia.

Novavax noted that the decision was a vital need for Indonesia, the fourth most populous nation worldwide. 

Subsequently, it also anticipated regulators in countries, specifically India and the Philippines, to finalize their decisions on its vaccine in the near term.

Correspondingly, it projects to provide booster shots as the need would continue in the coming years. 

Meanwhile, a green light from the WHO would allow Novavax to start shipping doses under its COVAX program. This will supply shots to low-income countries.

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