((Automated translation by Reuters using machine learning and generative AI, please refer to the following disclaimer:
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The company postpones its profitability target to 2028
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COVID vaccine maker forecasts 2026 revenue below Wall Street estimates
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Prescriptions for Novavax‘s COVID-19 vaccine dropped 20% this season
(Added actions and details on 2026 forecast and conference call comments in paragraphs 1-6, investor comments in paragraphs 8-9) by Mariam Sunny and Siddhi Mahatole
Novavax NVAX.O on Thursday delayed its profitability target by a year to 2028 as changes in U.S. vaccination policy dampened sales of the company’s COVID-19 vaccine.
The company’s shares fell 1% after projecting preliminary 2026 adjusted revenue below Wall Street estimates.
The company said prescriptions for its COVID vaccine have fallen 20% during the current vaccination season following new U.S. recommendations that have created confusion and obstacles for Americans wanting to get vaccinated.
“When we think about the COVID market this year and its future expectations, we see that there is some reset in the United States,” Jim Kelly, chief financial officer, said on a conference call after the results were released.
Novavax forecasts 2026 adjusted revenue of between $185 million and $205 million, excluding royalties and sales from its licensing agreement with Sanofi
SASY.PA. Analysts had forecast about $450.4 million, according to LSEG data.
The gloomy outlook comes as Novavax focuses on partnerships to reduce costs and boost growth, amid continued pressure from investors over sluggish sales of its COVID vaccine, Nuvaxovid.
Its second-largest shareholder, hedge fund Shah Capital, asked the board last month to consider selling the company.
“Shah Capital, an 8% shareholder, continues to be very disappointed to have obtained only a 1% share of vaccine sales this season and to continue to expect operating losses,” Himanshu Shah, founder of the fund, told Reuters.
“Novavax shareholders will be better served under the umbrella of a larger pharmaceutical company
The company expects its 2025 adjusted revenue to be between $1.04 billion and $1.06 billion, compared to a range of $1 billion to $1.05 billion previously. This figure excludes sales and royalties from Sanofi.
Third-quarter revenue was $70 million, beating estimates of $42.13 million.
The net loss for the quarter ended September 30 widened to $202 million from $121 million a year earlier as the company recorded non-cash charges of $126 million.
