TLDR
- Novavax raised its 2025 revenue forecast to $1.04-$1.06 billion, marking the third upward revision this year
- The company faces pressure from its second-largest shareholder Shah Capital, which wants the board to consider selling the company due to weak COVID vaccine sales
- Novavax received a $50 million milestone payment in Q4 after transferring U.S. and EU marketing rights for Nuvaxovid to Sanofi
- Third quarter revenue hit $70 million, beating analyst estimates of $42.13 million
- Net loss widened to $202 million in Q3 from $121 million a year earlier, including $126 million in non-cash charges
Novavax bumped up its annual revenue outlook for the third time in 2025. The company now expects adjusted revenue between $1.04 billion and $1.06 billion for the year.
The previous forecast ranged from $1 billion to $1.05 billion. This latest projection doesn’t include sales and royalties from Sanofi.
The Gaithersburg, Maryland-based biotech is leaning heavily on partnership deals to drive growth. Key agreements with Takeda Pharmaceuticals, Sanofi, and Serum Institute of India are providing crucial milestone payments.
Third quarter revenue reached $70 million. That number crushed analyst expectations of $42.13 million.
Shareholder Pushback on Weak Vaccine Sales
The revenue gains come against a backdrop of investor frustration. Shah Capital, the company’s second-largest shareholder, called for the board to explore a sale last month.
The hedge fund pointed to three straight years of disappointing COVID-19 vaccine sales. Nuvaxovid, the company’s COVID vaccine, has failed to gain market traction.
CEO John Jacobs is trying to shift the narrative. “This year we have relaunched the company with a focus on R&D and partnerships intended to position us well for long-term growth and profitability,” he said.
The company is targeting profitability by 2027. That timeline depends on the success of its partnership strategy.
Earlier in November, Novavax completed the transfer of U.S. and EU marketing authorization for Nuvaxovid to Sanofi. This deal triggered a $50 million milestone payment that will hit the books in the fourth quarter.
The partnership approach allows Novavax to generate revenue without shouldering the full cost of marketing and distribution. France’s Sanofi, Japan’s Takeda, and India’s Serum Institute now handle different aspects of Nuvaxovid’s commercialization.
Losses Continue to Mount
The financial picture remains challenging despite the revenue beat. Net loss for the quarter ending September 30 expanded to $202 million.
That’s up from a $121 million loss in the same period last year. The company recorded $126 million in non-cash charges during the quarter.
Of those charges, $97 million related to a Maryland site consolidation announced in October. The facility changes are part of the company’s restructuring efforts.
The partnership strategy is central to the company’s turnaround plan. These deals cover both marketing of existing products and development of new vaccine candidates.
The company is betting that royalties and milestone payments from partners will provide steadier revenue streams. This approach reduces the pressure on direct vaccine sales.
Novavax’s vaccine development pipeline extends beyond COVID-19. The partnerships with major pharmaceutical companies give the biotech access to global distribution networks.
The Sanofi deal represents one of the largest partnership moves. By handing over marketing rights in key Western markets, Novavax secured upfront and milestone payments.
The Takeda agreement covers Japan and other Asian territories. Serum Institute handles distribution in India and other emerging markets.
Third quarter results showed revenue nearly doubled analyst forecasts. The Sanofi milestone payment will provide an additional boost to fourth quarter numbers.
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