Covid Novavax (NVAX) Earnings for Q1 2022

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Novavax on Monday reported its first profitable quarter with a Covid vaccine rollout in several countries around the world, though the company still lost ground on earnings and revenue forecasts.

Novavax stock is down more than 8% in the trading period after the close.

Novavax reported net income of $203 million in the first quarter, compared to a net loss of $222.7 million in the same period last year. The company reiterated its 2022 revenue guidance from $4 billion to $5 billion.

Here’s how the company performed compared to what Wall Street expected, based on average analyst estimates compiled by Refinitiv:

  • Adjusted earnings: $2.56 per share, vs. Estimated $2.69
  • Revenues: $704 million, vs. $845 million expected

Novavax’s two-dose Covid vaccine for adults 18 and older could get clearance in the US as early as this summer. The Food and Drug Administration’s panel of independent advisors is scheduled to meet on June 7 to review data on the syringe and make a recommendation on whether it should be allowed for use.

Novavax was one of the first participants in Operation Warp Speed, the US government-backed race to develop a Covid vaccine in 2020. Pfizer, Moderna and Johnson & Johnson eventually beat the company as it struggled to increase its manufacturing capacity. Novavax asked the U.S. Food and Drug Administration to approve the shot four months ago in January, but officials said the review process was complicated.

“This is an incredibly complex review process that involves reviewing not only clinical data but also manufacturing data that will be necessary to make an emergency use authorization decision,” said Dr. Doran Fink, deputy director of clinical review in the FDA’s Division of Vaccines, told the Centers for Disease Control and Prevention’s panel of independent vaccine advisors last month.

Novavax has received several licenses to get its two-dose Covid vaccine outside the United States since it published clinical trial data late last year. Australia, Canada, the European Union, Japan and the United Kingdom among other countries have cleared the vaccine for adults 18 years of age or older.

The Novavax clinical trial in the United States and Mexico found that the protein-based vaccine was 90% effective in preventing mild disease and 100% effective in preventing severe disease. However, the study was conducted from December 2020 through April 2021, before the delta and omicron variants emerged and impaired the ability of the Covid vaccines to prevent infection.

Novavax released the results of a lab study in December that showed the vaccine elicited an immune response against Omicron, though not as strong a response against the original strain of the virus. A third dose boosted the immune response against Omicron to levels similar to clinical trials in the United States and Mexico, indicating a high level of protection with the booster substance.

If the FDA permits, Novavax shots will provide an alternative for people who do not want to take the Pfizer and Moderna vaccines. Novavax uses a more traditional protein-based technology, while Pfizer and Moderna’s shots use messenger RNA for the first time. Although Moderna and Pfizer shots have been shown to be safe and effective against severe disease, some people may prefer the technology that has a longer track record.

CNBC Health and Science

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