-Novavax raised its full-year adjusted revenue forecast on Wednesday, betting on the strength of vaccine supply partnerships, including with Serum Institute of India and Japan’s Takeda, sending its shares surging 15%.
The biotech has been shifting its focus to commercializing vaccine candidates through partnerships. It relies on revenue from its licensing deal with French drugmaker Sanofi and vaccines in development, including a COVID-flu combination shot and for bird flu that is currently undergoing lab testing.
Novavax had licensed the rights for its COVID-19 shot, Nuvaxovid — also its sole commercial product — to Sanofi in an up to $1.2 billion deal last year.
The company expects its 2025 adjusted revenue to be between $1 billion and $1.05 billion, up from $975 million to $1.03 billion forecast earlier. This excludes Sanofi sales and royalties.
Novavax also beat Wall Street expectations for second-quarter revenue, driven by a $175 million milestone payment related to the U.S. approval of Nuvaxovid in May.
It plans to start a post-marketing study on Nuvaxovid by the end of the year, and estimates that to cost between $70 million and $90 million. The company expects Sanofi to reimburse about 70% of the costs, while it will absorb the rest.
Novavax’s traditional protein-based COVID-19 shot offers an alternative technology to messenger RNA-based rivals from Pfizer and Moderna, but has failed to make a mark in the U.S. vaccine market due to manufacturing issues and regulatory hurdles.
The biotech, however, sees an opportunity after the U.S. Department of Health and Human Services said it would wind down mRNA vaccine development under its biomedical research unit, BARDA, which helps companies develop treatments and diagnostic tools to address public health threats.
“There is the potential opportunity for us, particularly since other platforms may be taken out of consideration,” Novavax Executive Vice President Silvia Taylor said on a post-earnings call.
Novavax said it is working with BARDA on potential funding for its H5N1 bird flu vaccine candidate.
It reported total quarterly revenue of $239 million, beating analysts’ estimate of $147.96 million, according to data compiled by LSEG.
