Novavax Stock is Slipping After the Vaccine Maker Cut its Outlook Again
· InvestopediaKey Takeaways
- Novavax shares fell after the company dropped its full-year revenue guidance with its third-quarter results.
- The company has cut its guidance multiple times this year, and the new range is below the analyst consensus.
- On Monday, the FDA said the company could continue testing its combination COVID-19-flu and standalone flu vaccines.
Novavax (NVAX) shares dropped Tuesday morning after the company slashed its full-year outlook when it announced its third-quarter results.
The COVID-19 and flu vaccine maker said it expected full-year revenue of $650 million to $700 million, down from its prior projection of $700 million to $800 million. The new estimate is well below the analyst consensus of $747.6 million compiled by Visible Alpha, and a far cry from the company’s own expectations after 2023—when the company said revenue could reach $1 billion this year.
In the third-quarter, revenue fell 55% year-over-year to $85 million, down more than half from $187 million a year earlier but above analysts expectations. The company posted a narrower-than-expected net loss of $121.3 million or 76 cents per share, compared to $130.78 million or $1.26 per share a year earlier.
Shares of Novavax fell about 5% Tuesday morning.
Novavax Gets FDA Nod to Test Vaccines
The third-quarter results come a day after the drugmaker announced the U.S. Food and Drug Administration (FDA) gave the company the go-ahead to continue testing its combination COVID-19-flu and standalone flu vaccines.
The FDA removed its clinical hold on the studies, and will allow it "to begin enrolling the planned Phase 3 trial following the determination that Novavax satisfactorily addressed all clinical hold issues."
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