Novavax
had no sales to report for its June quarter. But the Gaithersburg, Md.-based firms vaccine has done so well in clinical trials against the Covid-19 virus that its Thursday report on the quarter looked confidently ahead to the authorizations it expects from governments around the world.With studies showing its shots to be more than 90% effective at preventing Covid, even from worrisome virus variants, Novavax (ticker: NVAX) stock doubled this year to a Thursday close of $236.20. The shares were off 6%, to $220, in the after-hours of the companys announcement. But this years steep run-ups of vaccine stocks have left many selling off on their June quarter news. Moderna (MRNA) stock fell 2% Thursday, after reporting splendid results. Novavax had $300 million in June quarter revenue, thanks to its backing from the U.S. governments Covid vaccine program. Large clinical trials, and the ramp-up of facilities to produce 150 million monthly doses by year-end, left the company with a loss of $350 million, or $4.75 a share. More than $2 billion in cash at Junes end means that Novavax can finish its vaccine development.
Most of the companys announcements concerned its vaccine programs. After finishing the Phase 3 trial showing its vaccines high effectiveness in adults, Novavax has fully enrolled a study in adolescents. Like
Pfizer
(PFE),
BioNTech
(BNTX), and
Moderna
(MRNA), the company is studying six-month booster shots; it says that a booster shot of its vaccine lifts antibody levels fourfold in previously vaccinated people, and generates antibodies that react against newer variants of the Covid virus.
Applications for emergency use authorization have been filed by the companys manufacturing partner, the Serum Institute of India, in India, Indonesia, and the Philippines. Novavax expects to make similar filings in the U.K. during the September quarter, with European and U.S. filings in the months that follow.
Advance purchase agreements totaling over a billion doses have been signed with a vaccine alliance representing low-income countries, as well as the European Commission.
Write to Bill Alpert at william.alpert@barrons.com
