Yahoo Finance's Anjalee Khemlani breaks down quarterly earnings for Novavax and GoodRx as well as how the market is reacting.
JULIE HYMAN: All right. Let's get back to this morning's movers. We have a lot of them. We're watching two big moves in health care going in opposite directions in a big way. Novavax shares are tumbling some 25%. GoodRx shares up by some 29%. Our health care reporter Anjalee Khemlani is here with us now.
Let's start with Novavax, the bigger one of the two in terms of the size of the company. And the vaccine sales are not going so well at Novavax.
ANJALEE KHEMLANI: They aren't. And they also lost out on an opportunity to sell to lower, middle-income countries through that World Health Organization group. So that's really where they're hurting right now. They're seeing slower demand than expected and are not expecting more sales in the US.
Which brings up the question about the booster scenario because we know that is the market they were really targeting and hoping to be a part of. So we'll definitely have to keep a watch on that. They have their outlook for 2020 going from $4 to $5 billion for the year down to $2 to $2.3. And they are looking at-- even though they got that emergency use authorization and they have global authorizations around the world, it seems to not really be impacting as much total revenue.
It was about $400 million since July 1. So we heard on the earnings call, CEO Stanley Erck saying that some of that revenue that came in later was actually attributed to the prior quarter but didn't actually come in and wasn't realized as a part of it. So we'll definitely have to keep an eye on that. Meanwhile, GoodRx, as you know, has the generics prescription market down on lock and has a lot going on there.
They did alert investors about a grocer issue. Not naming that grocer but definitely came out that it was Kroger, as some had expected. And an issue there has been resolved, so what-- they expect it to be millions of dollars in a hit and a downturn in the 2022 outlook. Now coming up with a bit of a revenue increase there and that resolution there.
But they do-- they did say on the call-- both those co-CEOs did say on the call that they are not entirely sure of the positive or the upside from that grocer turnaround because it depends on whether or not the subscribers do come back from that. But they have seen an increase in revenue from subscriptions, in part due to an increase in that pricing.
BRIAN SOZZI: Tough outlook from Novavax. But we'll have a lot of questions to ask Novavax CEO Stanley Erck very soon. Anjalee Khemlani will be back for that chat. We'll talk to you in a little bit.