Novavax (NVAX) Q4 Earnings & Revenues Miss Estimates, Stock Down
Novavax, Inc. NVAX incurred a loss of $2.28 per share for fourth-quarter 2022, which was significantly wider than the Zacks Consensus Estimate of a loss of 92 cents as well as our estimate of $1.80. In the year-ago quarter, NVAX posted a loss of $11.18 per share.
Revenues for the quarter were $357 million, up 61% year over year. However, revenues also missed the Zacks Consensus Estimate of $378 million as well as our estimate of $364.5 million.
Shares of Novavax lost 26.13% in the after-market hours on Tuesday, following the dismal earnings results. The stock of the company has plunged 89.3% this year compared with the industry’s 11.4% decline.
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Quarter in Detail
Novavax markets two versions of its COVID-19 vaccine, one marketed in partnership with the Serum Institute of India (Serum) under the trade name Covovax and another version produced by Novavax that is marketed under the trade name Nuvaxovid. In the United States, the vaccine is marketed as Novavax COVID-19 Vaccine, Adjuvanted.
During the fourth quarter of 2022, revenues were driven by the sales of Nuvaxovid products. Total sales from Nuvaxovid product sales were recorded at $288 million, which beat the Zacks Consensus Estimate and our estimate of $258 million. Higher product sales helped offset a decline in grants, royalties and other revenues.
NVAX recorded $39 million of revenues from royalties and adjuvant sales to license partners which portrays a decline of 100% from $127.2 in the year-ago quarter.
Novavax’s grant revenues declined 26.8% year over year to $69.6 million for the same period.
In the reported quarter, research and development expenses were $258 million, down 73.2% year over year. The downside was primarily caused by a decrease in development activities relating to coronavirus vaccines and an increased amount of manufacturing network costs capitalized to inventory which previously were expensed to research and development.
Selling, general and administrative expenses rose 92.9% year over year to $162 million. The rise in expenses was driven by activities to support the commercialization of Novavax’s COVID-19 vaccine program.
As of Dec 31, 2022, Novavax had $1.34 billion of cash and cash equivalents compared with $1.28 billion as of Sep 30, 2022.
2022 Results
For the full year, Novavax clocked revenues of $1.98 billion, which marginally missed the Zacks Consensus Estimate of $2.0 billion, but witnessed growth of 72.9% year over year.
Novavax’s loss per share for the entire year is $8.42, wider than the Zacks Consensus Estimate of a loss of $6.86 per share. In 2021, the company recorded a loss of $23.44 per share.
Recent Updates
Per management, Novavax has delivered more than 100 million doses of Nuvaxovid, its COVID-19 vaccine, globally to date.
In February 2023, the company reached a modified agreement with the U.S. government for up to 1.5 million additional doses of Nuvaxovid for delivery in 2023. The company shared its intent to deliver updated mono- or bivalent strain vaccine for the 2023 fall vaccination season, consistent with public health recommendations. Novavax also reported the European Medicines Agency and FDA approvals of Nuvaxovid five-dose vial variation.
Novavax reported that a part II of its phase III study on the COVID-19 Omicron BA.1 vaccine candidate will evaluate the candidate vaccine compared with an Omicron BA.5 vaccine, as well as a bivalent containing prototype and Omicron BA.5 vaccine. The study is expected to be completed in July 2023.
NVAX is evaluating a COVID-19-influenza combination (CIC) vaccine candidate in a phase II study in older adults (50-80 years), initiated in December 2022. The CIC vaccine is a combination of NVX-CoV2373 and the influenza vaccine in a single formulation. The initiation of this study was based on positive data from the phase I/II study on the CIC vaccine announced in October 2022. Data from the study proved that the CIC vaccine was feasible, well-tolerated and immunogenic. In fact, the immune responses were comparable to the standalone influenza vaccine candidate and standalone NVX-CoV2373 formulations. Management plans to announce initial data from the phase II study in mid-2023. Based on this data, Novavax will decide whether to advance the CIC vaccine to late-stage development.
Novavax, Inc. Price, Consensus and EPS Surprise
Novavax, Inc. price-consensus-eps-surprise-chart | Novavax, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, Novavax has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Allogene Therapeutics, Inc. ALLO, ADMA Biologics, Inc. ADMA and Amarin Corporation plc AMRN, all carrying a Zacks Ranks #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 90 days, the estimate for Allogene’s 2022 loss per share has been flat at a loss of $2.38. During the same period, the loss estimate per share for 2023 has narrowed from $2.85 to $2.83. In the past year, the shares of Allogene have fallen 27.6%.
ALLO’s earnings witnessed an average earnings surprise of 9.44%, beating all four estimates in the trailing four reported quarters.
In the past 90 days, the consensus estimate for ADMA Biologics’ 2022 loss per share has been flat at a loss of 33 cents. But, during the same period, the loss estimate per share for 2023 has narrowed from 20 cents to 19 cents. In the past year, the shares of ADMA Biologics have increased by 115.2%.
ADMA’s earnings beat estimates in three of the trailing four quarters, delivering an average earnings surprise of 1.81%.
In the past 90 days, the estimate for Amarin’s 2022 loss per share has been flat at a loss of 13 cents. During the same period, the loss estimate per share for 2023 has narrowed from 8 cents to 6 cents. In the past year, the shares of Amarin have fallen 36.4%.
AMRN’s earnings witnessed an average loss surprise of 14.29%, beating two out of four estimates in the trailing four reported quarters and missing the mark on the other two occasions.
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