Novavax cuts 2022 revenue guidance in half, stock tanks in after-hours trading

In this photograph illustration a silhouette of a person holding a medical syringe and a vial seen displayed in entrance of the Novavax emblem on a display.

Cezary Kowalski | Lightrocket | Getty Images

Novavax deeply lower its full 12 months revenue guidance Monday as gross sales of its Covid-19 vaccine slowed considerably in the second quarter.

The firm lower its 2022 gross sales outlook by about 50% and now expects to generate $2 billion to $2.3 billion in revenue this 12 months. Novavax beforehand forecast $4 billion to $5 billion in revenue for the 12 months.

Novavax’s stock dropped 33% in after hours trading. The firm posted a web lack of $6.53 per share and posted revenue of $186 million for the quarter, properly under expectations.

CEO Stanley Erck stated revenue tanked because of lack of demand in the U.S. market and from Covax, a world alliance that procures vaccines for low and center revenue nations. Novavax just isn’t anticipating any new revenue from the U.S. market or Covax for the rest of the 12 months, Erck stated.

Although Novavax obtained authorization for its vaccine in the U.S. earlier this summer season, Erck stated the corporate was late to the market and persons are nonetheless overwhelmingly getting immunized with Pfizer and Moderna’s pictures. He stated Novavax has additionally struggled as a result of its vaccine just isn’t but accredited as a booster or for adolescents in the U.S. but.

There was additionally a surge in vaccine provide to Covax which restricted the alliance’s want for pictures from Novavax, Erck stated.

The Maryland biotech firm’s Covid-19 vaccine gross sales slowed to $55 million in the second quarter from practically $585 million in the primary a part of the 12 months. CEO Stanely Erck stated Novavax is gaining momentum in the third quarter with 23 million doses delivered to date. But the corporate acknowledged deliveries of some vaccine orders might be pushed to 2023.

The firm suffered a web lack of $510.5 million total in the second quarter in comparison with a web lack of $352.3 million in the identical interval final 12 months — earlier than its vaccine was licensed anyplace. Novavax turned its first quarterly revenue earlier this 12 months.

This is a creating story. Please test again for updates.

CNBC Health & Science

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