Novavax (NASDAQ:NVAX) has a clear message for Wall Street: The cash-strapped COVID vaccine maker sees a pathway to survival.
Maryland-based Novavax said as much last month when it reported its first-quarter financial results and unveiled a broad cost-cutting push along with a higher-than-expected 2023 revenue forecast of $1.4 billion to $1.6 billion. That report stood in stark contrast to the previous quarter, when the biotech company raised doubts about its ability to stay in business.
But Wall Street hasn’t entirely bought into the recovery plan: Shares of Novavax are still down roughly 18% since the start of the year after shedding more than 90% of their value in 2022. They opened Wednesday up 16 cents, or 2%, to $8.20.
And staying afloat through 2023 and beyond may not be an easy task.
The 36-year-old company will continue to rely on its protein-based COVID vaccine – its only commercially available product – for most of its revenue this year.
COVID shot sales will largely depend on Novavax’s ability to deliver an updated version of its jab in time for the fall, when the U.S. government is expected to shift vaccine distribution to the private sector. Even if Novavax can meet that timeline, it will face tough competition from mRNA rivals Pfizer (NYSE:PFE) and Moderna (NASDAQ:MRNA).
Wall Street is also waiting to see how Novavax will execute its cost reduction plan, and how a pending $700 million arbitration over a canceled vaccine purchase agreement could play out.
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