Novavax Inc. shares fell drastically in the extended session on Tuesday after the biotechnology drug maker reported a much higher loss than analysts had anticipated and restructured with concerns that it may not be able to stay in business for another year.
The company stated that their current cash flow forecast for the one-year “going concern look-forward period” estimated that they have enough capital to fund their operations, but this forecast is subject to a lot of uncertainty. This uncertainty includes 2023 revenue, funding from the US government, and pending arbitration.
The company’s quarterly report showed a net loss of $1.06 billion, or $6.43 per share, compared to a loss of $189.7 million, or $1.20 per share, in the same period a year ago. Analysts had expected a net loss of $492.9 million, or $3.09 per share.
According to Chief Executive Stanley Erck, the company has been able to secure additional funding and has taken steps to reduce costs and conserve cash. He commented that the company is “in a strong position to execute on our business plan and deliver on our mission.”
Novavax’s shares have been volatile recently, with the stock dropping more than 8% in the extended session on Tuesday. The company’s shares have been on a roller coaster this year, with the stock rising more than 400% since the beginning of 2021.
The company has been under pressure recently due to its involvement in the US government’s Operation Warp Speed program. The program was designed to accelerate the development, manufacturing, and distribution of COVID-19 vaccines and treatments. Novavax was awarded a $1.6 billion contract by the US government to develop and manufacture its vaccine.
The company has also been in the news due to its dispute with Emergent BioSolutions Inc. over the manufacturing of its vaccine. Novavax had alleged that Emergent had breached its contract, and the two companies have been in arbitration since then.
Novavax has been working to develop its vaccine for the past year, and the company is currently in Phase 3 trials. The company is hoping to have the vaccine approved by the US Food and Drug Administration by the end of the year.
Despite the uncertainty surrounding the company’s future, Novavax remains hopeful that its vaccine will be approved and that it will be able to secure additional funding. The company is also working to reduce costs and conserve cash in order to remain in business for another year.
Novavax is a biotechnology drug maker that has been in the news recently due to its involvement in the US government’s Operation Warp Speed program. The company has been working to develop its vaccine for the past year, and is currently in Phase 3 trials. The company recently posted a larger than expected loss and has restructured with concerns that it may not be able to stay in business for another year. Despite the uncertainty, the company is hopeful that its vaccine will be approved and that it will be able to secure additional funding. The company is also working to reduce costs and conserve cash in order to remain in business for another year.
