The American company dedicated to the development of vaccines, Novavax, acquired a very important role with the arrival of the Covid-19 and the subsequent development of its vaccine, Nuvaxovid. An event that caused a very striking increase in sales and the value of the company’s shares, although over the months they have seen a drastic reduction, leaving a very negative outlook.
The beginning of 2023 has been a turning point for Novavax, the results obtained in the last months of the year have caused the vaccine manufacturer to report on the significant uncertainty around the expected income for this year. Specifically, according to data obtained by Refinitiv, the company has lost 182 million dollars (165,221,693 euros), which translates into 2.28 dollars per share, in the fourth quarter of 2022 as a result of sales lower than expected, 357 million dollars (324,088,705 euros) compared to 383 million dollars (347,691,804 euros).
This situation has caused several agreements that they had to have ended. As is the case of U.S. governmentwhich has not extended its agreement beyond December 2023, putting at risk some of the remaining 416 million vaccines in the said agreement, or pending arbitration with the global vaccine alliance, Gaviwhich may request that you refund all or part of the approximately 700 million dollars (635,468,050 euros) that he received from the group.
The company with more than 30 years of experience only has this product on the market, which means a total economic dependence on the results obtained from their sales.
The case of Novavax poses many differences with other vaccine manufacturers such as Pfizer or Moderna, since they have not obtained as many sales as they have and, furthermore, they have not been able to adapt to changes and have fully committed to the vaccine against Covid-19. The company, with more than 30 years of experience, only has this product on the market, which means a total economic dependency of the results they obtain from their sales.
One of the points where you can very clearly see the fall of novavax In economic terms it is its value on the stock market. After experiencing a large rise (27%) from mid-2020 to the end of 2021, they suffered the effects that other Covid-19 vaccine manufacturers have experienced, with a 95% declinethat is, from 217 dollars to 9 dollars.
FUTURE MEASURES
Faced with a panorama of losses and falling income, Novavax has started with its ‘savings’ plan. The CEO of the company, John Jacobshas announced that they have achieved cut about 50 million dollars (45.390.575 euros) in costs this first quarter. “We are looking at everything from buildings, leases, land, staff and contractors, all aspects of our business and the way we work,” he says.
John Jacobs, has announced that they have managed to cut close to more than 45 million dollars in costs this first quarter
In addition to the cuts, Novavax has announced that they will continue to focus on Covid-19 vaccine updates. Jacobs has explained that they are preparing for changes to how next-generation COVID vaccines will be rolled out.
