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Novavax's Declining Revenue Widens Loss

The drug company's net loss widened to $11 million in the fourth quarter as revenue plunged 82%.

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On March 31, 2009,



announced that its net loss for Q4 FY08 widened on declining revenue. Net loss widened to $11.08 million from $9.22 million in the prior year's quarter. The most recent consensus estimate was a loss of $0.13 per share.

Total revenue plunged 81.7% to $70,000 from $383,000 in the year-ago quarter. Contract research and development sales dropped 88.2% to $41,000 from $346,000. Moreover, the company did not generate any revenue from product sales due to the discontinuation of the sale of Gynodiol. Royalties, milestone, and licensing fees fell 21.6% to $29,000 from $37,000.

Research and development costs spiked 40.4% to $5.87 million from $4.18 million a year ago, due to higher spending on proprietary virus-like particle (VLP) technology. General and administrative expenses increased 17.0% to $3.42 million from $2.92 million.

Novavax announced that it formed a joint venture with Cadila Pharmaceuticals to develop, manufacture and market vaccines, pharmaceuticals and diagnostic products in India. Cadila, which owned 80.0% of the joint venture, will contribute about $8.00 million over three years to support the operations. Novavax completed the second stage of a Phase IIa clinical trials of its pandemic flu VLP vaccine candidate. It also announced the favorable safety and immunogenicity results of its Phase IIa seasonal flu VLP vaccine. The company also presented the results from a preclinical study of a Respiratory Syncytial Virus vaccine candidate directed against the viral fusion protein.

For FY08, net loss was $36.05 million or $0.53 per share compared with a loss of $34.77 million or $0.57 per share in FY07. Annual revenue slipped 29.7% to $1.06 million from $1.51 million a year ago.