By Sriparna Roy
Nov 5 (Reuters) – Vaccine maker Novavax raised its annual revenue forecast above Wall Street expectations on Thursday, banking on payments related to its licensing deals.
Shares of the company rose over 3% to about $11 in premarket trading.
The company 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.
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.
The loss-making company is betting on the licensing agreement with French drugmaker Sanofi, worth at least $1.2 billion, to reach profitability by 2028.
“We intend to bring new partners forward and it is core to our business model. So not only are we open to it, but we proactively try to facilitate and seek that,” Novavax CEO John Jacobs said in an interview.
The company is running experiments to assess the impact of adding its Matrix-M adjuvant to existing shots, having evaluated more than 30 commercialized vaccines globally, Jacobs told Reuters.
Sanofi plans a late-stage US trial of its influenza-COVID-19 combination vaccine, which uses Novavax’s COVID-19 vaccine Nuvaxovid, in 2027. Novavax is eligible for a milestone payment of $225 million upon US commercial launch.
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 is also exploring vaccines for bacterial and fungal infections, as well as cancer.
It posted a quarterly net loss of $31 million, compared with a net loss of $202 million a year ago.
(Reporting by Sriparna Roy in Bengaluru; Editing by Sahal Muhammed)
Comments