In this photo illustration a silhouette of a man holding a medical syringe and a vial seen displayed in front of the Novavax logo on a screen.
Cezary Kowalski | Lightrocket | Getty Images
Novavax deeply cut its full year revenue guidance Monday, with the company expecting no new sales for the remainder of 2022 in the U.S. or from an international alliance called Covax that represents low and middle income countries.
The Maryland biotech company cut its 2022 sales outlook by about 50% and now expects to generate $2 billion to $2.3 billion in revenue this year. Novavax previously forecast $4 billion to $5 billion in revenue for the year.
Novavax's stock dropped 33% in after hours trading. The company posted a net loss of $6.53 per share and posted revenue of $186 million for the quarter, well below expectations.
"For the quarter revenue was $186 million, a significant shortfall from both the first quarter results, and as I said from our expectations," CEO Stanley Erck told analysts during the company's earnings call. "We are now projecting that we will have no new revenues in 22 from the U.S .or from Covax."
Erck said Novavax was late to the U.S. market where people are still overwhelmingly getting vaccinated with Pfizer and Moderna's shots. Novavax received U.S. authorization for its Covid shots for adults earlier this summer, but 77% of people in that age group are already fully vaccinated with Pfizer, Moderna and to a lesser degree Johnson & Johnson's shots.
Erck said Novavax has struggled because its shots are not yet approved as a booster or for adolescents in the U.S. yet, the core of the remaining market for Covid vaccination in the U.S.
There was also a surge in vaccine supply to Covax which limited the alliance's need for shots from Novavax, Erck said. Covax has struggled to distribute the inventory it has stockpiled to low and middle income countries, he said.
Novavax's vaccine sales slowed to $55 million in the second quarter from nearly $585 million in the first part of the year. The company suffered a net loss of $510.5 million overall in the second quarter compared to a net loss of $352.3 million in the same period last year — before its vaccine was authorized anywhere.
Novavax turned its first quarterly profit earlier this year.