Maryland based COVID-19 vaccine maker Novavax to chop workforce, expenses

Maryland-based Novavax is chopping a few quarter of its workforce because the COVID-19 vaccine maker seeks to slash bills whereas coping with unsure future income.

The corporate stated Tuesday that it expects to trim subsequent yr’s prices for analysis and improvement in addition to promoting, common and administrative bills by about 40% to 50% in comparison with 2022.

The corporate had 1,992 full-time workers as of February 21, in line with Securities and Change Fee filings. The job cuts introduced Tuesday would equate to 498 workers.

Novavax’s protein-based vaccine debuted lengthy after alternate options from corporations like Pfizer, Moderna and Johnson & Johnson had reached the market. Solely about 88,458 doses of the Novavax vaccine have been administered in america, in line with the Facilities for Illness Management and Prevention.

That compares to greater than 400 million doses of market chief Pfizer’s two-shot authentic vaccine and up to date booster.

The COVID-19 vaccine is Novavax’s lone industrial product. It’s updating that vaccine for this fall and in addition creating a flu shot and a coronavirus-flu shot mixture.

The corporate stated in February that it estimates that it has sufficient money to fund operations for the subsequent yr, however “substantial doubt exists relating to our capability to proceed as a going concern” on account of uncertainty over components like 2023 income.

Vaccine makers count on gross sales to gradual this yr, significantly within the first half, as they swap from supplying the U.S. authorities to promoting their pictures commercially. They forecast some enchancment within the fall, when individuals will begin looking for up to date booster pictures.

Within the first quarter, Novavax Inc. complete income sank to $81 million from $704 million in final yr’s quarter. The corporate swung to a internet lack of $294 million from internet earnings of $203 million. That equated to a lack of $3.41 per share.

Analysts anticipated a lack of $3.46 per share on $87.6 million in income, in line with FactSet.

Novavax, based mostly in Gaithersburg, Maryland, has been round since 1987. The corporate stated in its SEC submitting that its bills have exceeded revenues since then. The corporate’s gathered deficit as of Dec. 31 was $4.3 billion.

Shares of Novavax climbed 21% in early-morning buying and selling.