Novavax
stock was tumbling Wednesday after the vaccine maker reported disappointing fourth-quarter results but cut costs in what it dubbed a “transition year.”
Novavax
reported a fourth-quarter loss of $1.44 a share on revenue of $291.3 million, down 18% from a year earlier. Analysts surveyed by FactSet were expecting a loss of 45 cents a share on revenue of $322.1 million. A year ago,
Novavax
reported a loss of $2.28 a share.
“2023 was a transition year for Novavax and we have made tremendous progress towards strengthening the financial profile of the company,” Chief Executive John Jacobs said in a press release. The year included a restructuring plan with a 30% headcount reduction since the first quarter of 2023.
Novavax said Wednesday it expects to post full-year revenue between $800 million and $1 billion, below the consensus call among analysts of $1.06 billion.
Novavax issued a going concern warning a year ago, saying it had ”substantial doubt” about its ability to continue operating. In October 2023, the Food and Drug Administration authorized an updated version of the Novavax vaccine for use in people ages 12 and up.
Shares of Novavax were falling 26% Wednesday to $4.45, and were on pace for their largest percentage decrease since Dec. 15, 2022, according to Dow Jones Market Data. That’s a stark contrast to the 22% gain the stock had on Feb. 22 after the company reached a settlement with nongovernmental organization Gavi for its Covid-19 vaccine.
Moderna
stock was down 0.8%, while
Pfizer
shares were flat.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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