Business

Novavax cuts sales guidance in half, shares fall 34%

The executives of Novavax Inc. slashed their annual sales guidance for the second half of Monday while sorely lacking financial expectations, sending the stock down more than 30% in after-hours trading.

Novavax
NVAX,
-5.01%

now projects total revenue in 2022 of $2 billion to $2.3 billion, after previously stating a target of $4 to $5 billion. US Food and Drug Administration last month authorized the use of Novavax’s COVID-19 vaccinedoes not use the same technology as Pfizer Inc.’s vaccine.
PFE,
+0.61%

and Moderna Inc.
mRNA,
-2.09%
.

In an unsigned report that is separate from the financial resultsNovavax executives say the adjustment was made “to account for some of the evolving market dynamics.”

“We still believe in our vaccine as a strong complement,” the executives said. “Its competitive product profile includes the efficacy of our vaccine, a well-tolerated safety profile, durability of protection, and the ability to address both current and future.”

“In Q3, we made tremendous progress,” the statement continued. “We have shipped more than 23 million doses since the beginning of July, and in some cases delivery times could be pushed to 2023, we do not expect total contract demand to change by portion. our Pre-Purchase Agreements.”

For the second quarter, Novavax reported a loss of $510.5 million, or $6.53 a share, down from a loss of $4.75 a share a year ago, on revenue of 185, $9 million, down from $298 million last year. According to FactSet, analysts expect earnings to average $5.54 per share on sales of $1.02 billion.

Shares closed down 5% at $57.25, then fell about 34% in after-hours trading. As of now, the stock is down 60% this year, driven by the S&P 500 index
SPX,
-0.12%

fell 13%.

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