Novavax Inc. executives slashed their annual sales guidance in half Monday while wildly missing financial expectations, sending shares down more than 30% in after-hours trading.
Novavax NVAX, -5.01% now projects total 2022 revenue of $2 billion to $2.3 billion, after previously stating a goal of $4 billion to $5 billion. The U.S. Food and Drug Administration last month authorized the use of Novavax’s COVID-19 vaccine, which does not use the same technology as vaccines from Pfizer Inc. PFE, +0.61% and Moderna Inc. MRNA, -2.09%.
In an unsigned statement issued separately from financial results, Novavax executives said that the adjustment was made “to account for several evolving market dynamics.”
“We remain confident in our vaccine as a strong additional choice,” executives stated. “Its competitive product profile includes our vaccine’s efficacy, well-tolerated safety profile, durability of protection and ability to address both current and future variant strains.”
“In Q3, we are already making tremendous progress,” the statement continued. “We have shipped over 23 million doses since the beginning of July and, while in some cases delivery timing may be pushed into 2023, we do not expect total contracted demand to change under the majority of our Advance Purchase Agreements.”
For the second quarter, Novavax reported a loss of $510.5 million, or $6.53 a share, down from a loss of $4.75 a share a year ago, on sales of $185.9 million, down from $298 million last year. Analysts on average expected earnings of $5.54 a share on sales of $1.02 billion, according to FactSet.
Shares closed with a 5% decline at $57.25, then dove about 34% in after-hours trading. The stock has already declined 60% so far this year, as the S&P 500 index SPX, -0.12% has dropped 13%.