Shares of Novavax, Inc. plunged in Tuesday’s pre-market session after deeply cutting its full-year revenue guidance.
The vaccine maker notably posted a downtrend, declining 29.26% or 16.75 points to $40.50 per share. The movement trailed a downturn of 5.01% to $57.25 apiece on Monday.
Novavax slashed its sales outlook in the current year, with no new COVID-19 vaccine sales expected in the United States. The Maryland-based company also projected no international alliance with the COVAX facility, a worldwide initiative representing low- and middle-income countries.
Accordingly, the biotechnology company reduced its 2022 sales outlook by about 50.00%. In line with this, it anticipated generating $2.00 billion to $2.30 billion in revenue. As a result, the estimate came in lower than the previous range of $4.00 billion to $5.00 billion.
Meanwhile, Novavax highlighted no reduction in orders. Then, it expects to deliver more doses in the second half of the year and into 2023.
The business anticipated customers to spread out their orders amid excess supply. This statement came as manufacturers asked to delay or cut deliveries of the inoculations.
Last week, Moderna also experienced a hit from canceled orders from low- and middle-income nations through the COVAX program.
Still, the dismal guidance is the latest setback for Novavax’s protein-based shot. The vaccine grappled with manufacturing snags, regulatory delays, and sluggish uptake in key markets like Europe.
Novavax reports lower Q2 results
Another downside, Novavax published a loss of $6.53 per share in the second quarter. Consequently, it booked revenue of $186.00 million. Vaccine sales slowed to $55.00 million from $585.00 million in the prior period. Both results are well below the market expectations.
The company received US authorization for its shots for adults earlier this summer. However, about 77.00% of people in that age group are already fully vaccinated with other leading brands. The United States has so far ordered only 3.20 million doses of the firm’s drug.
Novavax was one of the original participants in the American race to develop a coronavirus vaccine in 2020. The company initially received $1.80 billion in taxpayer funding. Regardless, the firm fell behind Pfizer and Moderna as it struggled to get its manufacturing base in place.