Novavax, a biotechnology company specializing in innovative vaccines, reported a significant decrease in revenue for the fiscal year ending December 31, 2023. Total revenue dropped to $983.7 million from $1.98 billion the previous year, a decline largely attributed to reduced COVID-19 vaccine sales. Product sales fell by over $1 billion to $531.4 million, with the most substantial decrease in Europe, followed by North America and the rest of the world. Despite this, grant revenue increased slightly to $427.3 million, primarily due to increased support activities under the USG Agreement. The company also saw a decrease in royalties and other revenue. Novavax's cost of sales was $343.8 million, or 65% of product sales, including expenses related to excess, obsolete, or expired inventory and losses on certain firm purchase commitments...Show More

Novavax, a biotechnology company specializing in innovative vaccines, reported a significant decrease in revenue for the fiscal year ending December 31, 2023. Total revenue dropped to $983.7 million from $1.98 billion the previous year, a decline largely attributed to reduced COVID-19 vaccine sales. Product sales fell by over $1 billion to $531.4 million, with the most substantial decrease in Europe, followed by North America and the rest of the world. Despite this, grant revenue increased slightly to $427.3 million, primarily due to increased support activities under the USG Agreement. The company also saw a decrease in royalties and other revenue. Novavax's cost of sales was $343.8 million, or 65% of product sales, including expenses related to excess, obsolete, or expired inventory and losses on certain firm purchase commitments. Research and development expenses decreased by nearly $500 million due to reduced expenditures on coronavirus vaccines, including COVID-19 and CIC vaccines. Selling, general, and administrative expenses also saw a slight decrease due to cost containment measures. Novavax's net loss improved to $545.1 million from $657.9 million in the previous year. The company's cash and cash equivalents stood at $568.5 million at the end of 2023, down from $1.3 billion at the end of 2022. Novavax's future plans include restructuring to reduce expenditures and focusing on the commercialization of its updated COVID-19 vaccine for the 2023-2024 vaccination season. The company also plans to initiate a pivotal Phase 3 trial for its CIC vaccine candidate in the second half of 2024, with a potential launch anticipated in 2026. Novavax's financial statements have been prepared under the assumption of a going concern, but substantial doubt exists due to a history of losses, negative working capital, and an accumulated deficit.