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Novavax said it plans to cut annual combined 2024 R&D and SG&A expenses by about 40% to 50% relative to the last year. The company will also consolidate its facilities and infrastructure, as well as cut 25% of its global workforce.
“Today we outlined significant measures intended to reduce spend, extend our cash runway, and operate more efficiently. Combined with our focus on revenue generation from Nuvaxovid and management of our current liabilities, these measures should strengthen our cash position and our potential for the long-term growth and stability of Novavax,” said John C. Jacobs, President and Chief Executive Officer, Novavax.
The company expects to incur a restructuring charge of $10 million to $15M related to employee severance and benefit costs in the second quarter of this year.
For Q1, Novavax reported a loss per share of $3.41 on revenue of $81M. Analysts were expecting a loss per share of $3.42 on sales of $95.61M.
However, the company said it now expects full-year revenue to come in at $1.5 billion (up or down $100M), crushing the $831M estimate.
Moreover, Novavax also announced positive Phase 2 topline results for COVID-Influenza Combination, standalone influenza, and high-dose COVID vaccine candidates.
