By Sriparna Roy
Nov 5 (Reuters) – Vaccine maker Novavax pushed back its target for reaching profitability to 2029 on Thursday, overshadowing an increase in its annual revenue forecast and sending its shares 9% lower.
The loss-making company had been betting on a licensing agreement with French drugmaker Sanofi to make profits by 2028.
Sanofi’s flu-COVID combination vaccine would be the biggest driver of Novavax’s cash flow and the timeline for a late-stage trial is outside Novavax’s control, B Riley analyst Mayank Mamtani said.
Sanofi intends to start the trial in 2027, Novavax said. Novavax is eligible for a milestone payment of $225 million upon US commercial launch, which is expected in 2029.
Novavax has relied on licensing deals and partnerships tied to its protein-based vaccine platform and its Matrix-M adjuvant — a compound that boosts the body’s immune response to vaccines.
CEO John Jacobs told Reuters that Novavax is actively seeking more partnerships.
It is also aiming to build a library of data to expand the use of its vaccine technology and support potential partners’ vaccine programs.
“We view that library as a strategic asset, and as the evidence grows, we believe so too does the potential for new and expanded partnerships,” said Bob Walker, head of research and development at Novavax, on a post-earnings call.
The Democrats’ sweep in the US midterm elections has lifted hopes of stability in vaccine policy after a period of uncertainty.
“I think it’s too early to tell in the immediacy what may exactly happen there … I do think that could bode well over time for vaccine manufacturers,” Jacobs said.
Novavax now expects 2026 adjusted revenue between $385 million and $415 million, higher than $235 million to $275 million previously and analysts’ average estimate of $380.29 million, according to data compiled by LSEG.
Novavax posted a quarterly net loss of $31 million, narrowing from $202 million a year ago.
(Reporting by Sriparna Roy in Bengaluru; Editing by Sahal Muhammed)
