Novavax Plans to Cut $50 Million in Costs, COVID-19 Vaccine Remains Only Marketed Product

Novavax Inc’s (NASDAQ: NVAX) CEO, newly appointed CEO John Jacobs, said the company would cut about $50 million in costs in Q1 of 2023 and plans further cuts.
“We’re looking at everything from buildings, leases, land, headcount, and contractors, every aspect of our company and the way we work,” Jacobs said in an interview with Reuters.
Jacobs also said the company is in regular talks with the FDA over the potential design of its 2023 COVID-19 booster shot and believes Novavax will have a new shot ready in time for the fall.
The company appointed John Jacobs, President & CEO following the retirement of Stanley Erck, who served as President & CEO for 12 years.
Also Read: FDA’s Regulatory Delay is The Reason For Novavax, Lucira Health’s Failure
Novavax’s COVID-19 vaccine is its only marketed product after 35 years in business, the report added.
The CEO added that the company did not expect to launch its individual flu vaccine this year and will focus on the COVID vaccine.
Jacobs said Novavax would seek funding for its COVID/influenza combination shot, depending on whether the upcoming data is positive.
In February, when the company released its fiscal 2022 earnings, it said, “substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued.”
Novavax’s Q4 revenue increased 61% year-over-year to $357 million, which missed average analyst estimates of $383.14 million.
In its 10K filing, the company said the U.S. government did not extend its agreement with Novavax beyond December 2023, putting some of the remaining $416 million in that deal at risk.
Novavax also said that depending on the outcome of its arbitration with Gavi, it could be required to refund all or a portion of the $697.4 million it received from the group.
Price Action: NVAX shares are up 1.44% at $9.16 during the premarket session on the last check Thursday.
Photo by Jernej Furman via Flickr

Don’t miss real-time alerts on your stocks – join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

This article Novavax Plans to Cut $50 Million in Costs, COVID-19 Vaccine Remains Only Marketed Product originally appeared on Benzinga.com

Source: https://finance.yahoo.com/news/novavax-plans-cut-50-million-130349308.html