Novavax’s Quarterly Loss Narrows as It Ramps Down Spending on COVID Vaccines

Novavax reported a narrower fourth-quarter loss, driven by reduced selling and administrative expenses for its COVID-19 vaccines. The company’s quarterly sales for COVID vaccines were $49.8 million, a significant drop of 80.2% from the previous year. Despite the decline, Novavax signed a licensing deal with Sanofi worth at least $1.2 billion, which includes the rights to sell its vaccines in several markets, including the United States and Europe.

The U.S. company plans to continue selling its shots in the U.S. during the first half of this year, transitioning the market to Sanofi starting with the 2025-2026 vaccination season. Novavax is banking on revenue from its Sanofi deal and vaccines in development, including an experimental COVID-flu combination shot and a bird flu vaccine in the pre-clinical stage.

Novavax is eligible to receive royalties in the high teens to low twenties percent on Sanofi sales, along with $350 million in commercial launch payments associated with the COVID-flu combination products. The company did not provide a total revenue forecast for 2025, as it is reliant on Sanofi’s sales estimates for certain revenue components.

Novavax’s net loss for the quarter ended December 31 was $81 million, compared to a net loss of $178.3 million a year ago. The company ended 2024 with $938 million in cash and receivables, up from $584 million as of December 31, 2023.