Gaithersburg, Maryland-based COVID-19 vaccine maker Novavax, which announced a restructuring this summer that included cutting its workforce by 25%, saw its third quarter revenue tumble and it plans to further reduce expenses by millions of dollars.
Novavax is also making progress on its combination vaccine targeting COVID and the flu, which will enter late-stage clinical trials next year.
“As previously stated, one of our key objectives is to strengthen the financial stability of the company. To more efficiently scale our business, we are prepared to initiate additional cost reductions to further reduce expenses in 2024 by over $300 million,” Novavax CEO John Jacobs said.
Novavax has already reduced year-to-date operating expenses by $950 million, or 47% compared to 2022.
The company’s updated COVID-19 booster shot, which received U.S. regulatory approval this fall, is now available in more than 14,000 pharmacies, including Costco, CVS, Giant, Publix, Rite Aid and Stop & Shop. Novavax expects U.S. demand for the vaccine for the 2023-2024 season to be between 30 million and 50 million doses.
Novavax expects to begin Phase 3 clinical trials for its combination vaccine in the second half of 2024, with possible approval as early as 2026.
Novavax reported third-quarter revenue of $187 million, most of which was revenue from grants, compared to $735 million in revenue in the same quarter last year.
