Novavax Shares Off as Results Miss Estimates; New CFO Named

Novavax on Tuesday reported third-quarter results that missed Wall Street's estimates, and the biotech named a new CFO.
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Novavax NVAX on Tuesday reported third-quarter results that missed Wall Street's estimates, and the biotech named a new CFO.

Shares of the Gaithersburg, Md., company at last check were off 9.4% at $81.84.

Novavax reported its net loss widened to $197.3 million, or $3.21 a share, from $18 million, or 74 cents, in the year-earlier period. Revenue totaled $157 million, compared with $2.5 million a year earlier.

Analysts polled by FactSet were expecting the company to report earnings of $1.73 a share on revenue of $230.6 million.

The company said the revenue figure reflected increased development activity tied to its NVX-CoV2373 coronavirus candidate.

That activity comes-under an agreement with the Coalition for Epidemic Preparedness Innovations, participation in the U.S. government's Operation Warp Speed, and a contract with the Department of Defense.

Research and development expenses climbed to $294.1 million from $18.6 million a year earlier, with most of the costs connected to manufacturing-supply agreements for NVX-CoV2373.

Novavax ended the third quarter with $334.2 million in cash and cash equivalents.

The company also filed to offer $500 million of common stock through B. Riley Securities.

Novavax said in a Securities and Exchange Commission filing that it intended to use the proceeds from the offering for capital expenditures, R&D, clinical trials, potential acquisitions and other purposes.

In addition, the company said Gregory Covino was named executive vice president and chief financial officer. Prior to joining Novavax, he was group CFO, senior vice president and chief accounting officer at GlaxoSmithKline’s GSK Tesaro Oncology division.

Executive Vice President John Trizzino, previously Novavax's CFO, will now serve as chief commercial officer while continuing as chief business officer.

On Monday, Novavax shares jumped after its coronavirus vaccine candidate was granted fast-track designation by the U.S. Food and Drug Administration.

The company said it was on track to begin a U.S.-based late-stage study of its experimental coronavirus vaccine later this month.

"Fast track is a process designed to facilitate the development, and expedite the review of drugs to treat serious conditions and fill" unmet medical needs," the FDA says on its website