Novavax Q2 Earnings Call Highlights

Novavax Q2 Earnings Call Highlights

Q2 revenue fell to $57 million from $239 million a year earlier, largely because the prior-year quarter included a $202 million milestone benefit. Novavax ended the quarter with $743 million in cash and receivables and cut combined non-GAAP R&D and SG&A costs by 36% year over year. Novavax highlighted potential near-term Sanofi payments totaling $200 million , including a $125 million milestone tied to starting a Phase III COVID-19/influenza vaccine trial and a $75 million manufacturing technology-transfer payment expected around mid-2027. The company raised its 2026 adjusted revenue outlook to $235 million-$275 million and lowered its GAAP R&D and SG&A expense midpoint to $390 million. It also reported expanding Matrix-M partnerships into oncology, advanced its C. difficile vaccine toward potential clinical entry in 2027, and maintained targets for non-GAAP profitability as early as 2028. Novavax NASDAQ: NVAX reported second-quarter 2026 revenue of $57 million and a net loss of $53 million, while highlighting progress in its Sanofi partnership, expanding use of its Matrix-M adjuvant platform and continued cost reductions. Revenue declined from $239 million a year earlier, primarily because the second quarter of 2025 included a $202 million benefit from a biologics license application approval milestone and a Takeda amendment, Chief Financial Officer Jim Kelly said. The latest quarter included $19 million in product sales, up 76% year over year, driven by demand for Matrix-M from Takeda and Serum Institute. Novavax also recorded $36 million in Sanofi-related revenue, largely from research-and-development reimbursements and amortization. The company ended the quarter with $743 million in cash and accounts receivable. Kelly said Novavax reduced combined non-GAAP R&D and selling, general and administrative expenses by 36% year over year during the quarter. Sanofi milestones and Nuvaxovid commercialization Chief Executive Officer John Jacobs said Sanofi has confirmed its intention to be among the first companies to enter the COVID-19/influenza combination-vaccine market. Sanofi is in advanced discussions with regulators on the timing of a Phase III study for a program combining Nuvaxovid with Sanofi’s influenza vaccines, according to Novavax. Initiation of that Phase III study in either the U.S. or European Union would trigger a $125 million milestone payment to Novavax. Separately, Novavax expects to earn a $75 million manufacturing technology-transfer milestone from Sanofi around mid-2027. Kelly said the anticipated payment would extend the company’s cash runway from 2028 into 2029. Jacobs said the two potential milestones provide visibility to an additional $200 million in near-term payments, on top of more than $1 billion in upfront payments, milestones, royalties and cost savings that Novavax has already realized through its Sanofi relationship. Sanofi is preparing a broader commercial campaign for Nuvaxovid in the U.S., including pharmacy activation and direct-to-consumer outreach, Chief Strategy Officer Elaine O’Hara said. The partner also plans to expand availability to markets including the United Kingdom, Germany and Canada during the coming season. Kelly described the U.S. COVID-19 vaccine market as primarily consumer- and retail-driven, saying more than 85% of vaccinations are administered through retail channels. He said Novavax expects Sanofi’s direct-to-consumer campaign and retail presence to support a multi-year effort to establish the protein-based vaccine option in th...