Novavax Tumbles After Warning of ‘Substantial Doubt’ Over Future

(Bloomberg) -- Novavax Inc. said there’s substantial doubt about its ability to stay in business through next year, the latest warning from the company after it struggled to develop and sell a Covid-19 vaccine.

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The Gaithersburg, Maryland-based Novavax said in a statement Tuesday that it should have enough money to fund its operations but there’s “significant uncertainty” around its 2023 revenue. Shares of Novavax plunged 27% in extended trading. The stock is down 10% this year. after falling 93% in 2022.

The warning came as the company reported its fourth-quarter earnings on Tuesday, falling short of analysts’ estimates.

Novavax reported sales of $357 million last quarter, compared with the average estimate of $380.3 million compiled by Bloomberg analysts. The company posted an adjusted loss of $2.28 a share, more than Wall Street’s expectation of a loss of $1.15 a share. It ended the quarter with $1.34 billion of cash and equivalents.

Manufacturing troubles had delayed the company’s regulatory submissions for its Covid-19 vaccine. By the the time Novavax received authorization for its protein-based shot last year, mRNA vaccines from Moderna Inc. and Pfizer Inc. already dominated the market. Novavax now finds itself trying to sell its shot as the US government prepares to stop buying Covid vaccines and instead let that responsibility shift to the private market.

(Updates with earnings and additional details from third paragraph.)

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