Gaithersburg, Maryland-based Novavax, which announced a restructuring that included cutting its workforce by 25% last year, is adding to layoffs.
Novavax will eliminate 12% of its remaining workforce, including 9% of its current full-time employees and the remainder contractors and consultants.
The cuts will take place this quarter, and, combined with previous job cuts, will mean it has reduced its workforce by about 30% since last year.
Novavax said in a statement it intends to bring its research and development, and general expenses below $750 million this year, but is still committed to delivering its COVID-19 vaccine and advancing its combination COVID-19-influenza vaccine.
“With our mission to protect global public health at the forefront of all that we do, the new Nova is being designed to be a learner and more agile organization,” chief executive John Jacobs said in a statement. “We are redefining how we do business and are purposefully focusing only on the critical activities need to achieve our objectives and strengthen the financial performance of the company.”
Novavax reduced operating expenses by 47% last year.
Novavax will report its fourth quarter results in February. The company’s third quarter revenue was $187 million, most of which was from grants, compared to $735 million in the same quarter a year earlier. It cut quarterly losses to $131 million from $169 million a year earlier.
The company’s updated COVID-19 vaccine received U.S. regulatory approval last fall, and is available in more than 14,000 pharmacies. Novavax will begin Phase 3 clinical trials for its combination COVID-flu vaccine in the second half of this year, with approval possible as early as 2026.
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