Novavax Reduces 2024 Revenue Forecast and Scales Back European Operations, Reports Reuters

Novavax Lowers Revenue Forecast and Streamlines European Operations

By Leroy Leo

Novavax has once again revised its annual revenue forecast downward and plans to reduce its operations in Europe for the remainder of the year. This adjustment comes ahead of transferring sales rights for its COVID-19 vaccine to its partner, Sanofi, in 2025.

The company’s vaccine has struggled to capture significant market share against early entrants like Pfizer/BioNTech and Moderna, raising concerns about Novavax’s viability in the marketplace.

John Trizzino, Chief Operating Officer, stated during a post-earnings call, "We are concentrating our commercial efforts for the remainder of the year on our largest market, the U.S." The company will streamline its sales presence in Europe, focusing on key markets such as Germany, Italy, and Poland.

Novavax anticipates that overall demand for COVID-19 vaccines in the U.S. will remain consistent with last year. However, Trizzino is optimistic about the company’s performance, suggesting improvements ahead. The firm is seeking regulatory approval for its seasonal COVID vaccine aimed at the JN.1 strain from U.S. and European authorities.

On Thursday, Novavax shares increased by 5%, although the stock has declined over 95% since peaking in 2021 during the height of the pandemic.

In a significant move earlier this year, Novavax entered a licensing agreement worth at least $1.2 billion with Sanofi, providing much-needed financial support and aiding Sanofi’s initiative to co-develop a combined influenza and COVID vaccine.

After missing revenue and profit expectations for the second quarter, Novavax has adjusted its full-year revenue forecast to a range of $700 million to $800 million, down from an earlier estimate of $970 million to $1.17 billion.

Recently, Moderna also announced a reduction in its 2024 revenue forecast, primarily due to declining COVID vaccine sales in the EU. Novavax now projects product sales for the year to be between $275 million and $375 million, a decrease from its prior estimate of $400 million to $600 million, which had included royalties and other revenue sources.