Novavax says that it may not survive
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The cost of Covid vaccines: a challenge for Novavax, the pharmaceutical giant Pfizer and Moderna in the wake of the Covid pandemic
There are other Covid-vaccine makers that Wall Street has not been impressed with. Pfizer’s vaccine partner BioNTech has seen its shares plummet in the last year as investors worry that the boost to vaccine sales may be short-lived.
Public health care agencies already have an abundance of vaccine and pills to help avoid the spread of Covid and treat people who contract it, which is a big problem for Pfizer and Moderna.
The Chinese government is removing the Paxlovid from its list of treatments that are eligible for reimbursement as part of its national insurance program, and so the company now has no revenue for Paxlovid in China.
Novavax, which makes the Nuvaxovid vaccine used to treat Covid-19, posted huge sales gains for the past three years during the height of the pandemic. But the company is now facing serious financial challenges — and has even warned it may not be able to survive.
The company’s forecast is subject to significant uncertainty as it relates to future sales and funding from the US government, according to its earnings report after the closing bell Tuesday.
X-ray Negativity: Novavax’s General Results and Prospects for the Next Three-Year Closing Closure
Novavax still has about $1.3 billion in cash on its balance sheet. But that’s down from more than $1.5 billion at the end of 2021. In the fourth quarter alone, the company lost $182 million, and last year the company lost $658 million. There was a net loss of $1.7 billion in the year.
The CEO of Novavax, a veteran biotech executive who was hired in January, said that he believed that the company had a bright future due to its accomplishments over the past three years.
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