Novavax Plunges on Earnings

The biotech misses earnings expectations with a larger-than-expected loss.
By TSC Staff ,

Novavax

(NVAX) - Get Report

shares plunged Tuesday after the specialty biopharmaceutical company reported a wider fourth-quarter loss.

The Pennsylvania-based company had a net loss of $10.3 million, or 26 cents a share, compared with a loss of $3.1 million, or 10 cents a share, in the year-ago period. Revenue fell to $2.0 million compared with $4.0 million a year ago. The consensus estimate of analysts was for an EPS loss of 23 cents, according to Thomson First Call.

Selling and marketing expenses almost quadrupled to $6.3 million, reflecting the costs associated with launching Estrasorb, its topical estrogen-therapy replacement product.

"It is clear that our efforts to commercialize Estrasorb have not met our initial sales expectations," the company said. "However, based on market research we continue to believe in the potential of Estrasorb and

believe that the product would benefit from a marketing partner with the necessary financial resources, market presence, and a commitment to direct-to-consumer marketing support."

Net sales of the drug for the 2004 fiscal year after the June launch were $1.8 million.

Oppenheimer downgraded the stock from buy to neutral.

Shares fell 29 cents, or 23.4%, to $1.60.

Loading ...