(Provides share motion in paragraph 2)
By Michael Erman
Feb 28 (Reuters) – COVID-19 vaccine maker Novavax on Wednesday mentioned it expects income this yr to be flat or decrease as it really works to enhance its industrial efficiency and choose up market share from a lot bigger rivals, Pfizer and Moderna
The corporate posted a larger-than-expected fourth-quarter loss as income lagged analysts’ estimates, sending its shares down 20% in unstable premarket buying and selling.
Chief Government John Jacobs mentioned Novavax claimed only a low-single-digit share market share within the U.S. throughout the newest vaccination marketing campaign, as demand for COVID vaccines was smaller than hoped and the corporate obtained its protein-based shot to market later than its messenger RNA-based rivals.
“We have been dissatisfied with that U.S. efficiency,” Jacobs mentioned in an interview.
He mentioned the corporate’s gross sales pressure was not focused sufficient towards retail pharmacy chains, and that its 5-dose vials weren’t as handy to be used as rivals’ pre-filled syringes.
“Our intention this yr is to be far more aggressive. Pre-filled syringes are our goal within the U.S. market,” the CEO mentioned, including that there may also be a deal with “far more broad retail availability and a lot better contracts.”
The corporate posted a fourth-quarter lack of $1.44 a share on income of $291 million. Analysts, on common, had anticipated a lack of 45 cents and income of about $322 million, in keeping with LSEG information.
Novavax mentioned it expects 2024 income to be within the vary of $800 million to $1 billion, in contrast with $984 million in 2023. The Maryland-based firm lower its first-quarter income forecast to $100 million from its earlier view of $300 million.
Jacobs mentioned the corporate doesn’t anticipate profitability this yr, and can proceed to drive down prices. It expects analysis and growth and promoting, common and administrative bills to drop to between $700 to $800 million from over $1.2 billion in 2023.
Novavax raised doubts about its skill to stay in enterprise final yr, after its market worth surged to over $20 billion early within the pandemic because it labored to develop its shot. The corporate was suffering from manufacturing snags and regulatory delays and was unable to get its shot to market in a well timed method.
Consequently, Novavax shares have since misplaced round 98% of their worth, leading to a market capitalization of lower than $700 million.
Final week, the corporate agreed to pay again worldwide vaccine group Gavi a minimum of $475 million in money or vaccines by the top of 2028, settling a dispute that had created vital monetary uncertainty.
Nonetheless, the corporate’s warning about its skill to stay in enterprise stays in place. “Ought to we’ve got a profitable yr and we execute to our base plan, I feel we would be ready the place we begin considering the lifting of that,” Jacobs mentioned.
“We have gotten higher, quicker, extra lean and now we have to actually show out that execution within the industrial market.”
(Reporting by Michael Erman and Christy Santhosh; Modifying by Invoice Berkrot)
