Full Press Release Details
Novavax Reports First-Quarter 2014 Financial
Gaithersburg, MD (May 7, 2014) - Novavax,
Inc. (Nasdaq: NVAX), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization
of recombinant nanoparticle vaccines and adjuvants, today reported its financial results for the first quarter ended March 31,
Novavax Corporate Highlights
Year-to-date 2014 Achievements:
2014 Anticipated Events:
"Following the substantial progress
in our RSV and influenza vaccine development programs in 2013, I am delighted with our accomplishments in the first quarter of
2014. Based on this first quarter activity, I continue to believe that 2014 represents greater potential accomplishments across
our entire pipeline than we have ever had in our company's history," said Stan Erck, president and CEO of Novavax.
"Our recently announced top-line data from the Phase 2 clinical trial in women of child bearing age gives us flexibility
in the development of our RSV F vaccine candidate, not just for a maternal immunization strategy, but across all potential populations
Financial Results for the First Quarter
In connection with its acquisition on July
31, 2013, Novavax AB's operations have been included in the company's consolidated results of operations and financial
position as of the acquisition date. Novavax reported a net loss of $13.8 million, or $0.07 per share, for the first quarter of
2014, compared to a net loss of $10.0 million, or $0.07 per share, for the first quarter of 2013.
Novavax revenue in the first quarter of
2014 increased 95% to $7.5 million as compared to $3.8 million for the same period in 2013. The increase in revenue was primarily
due to the higher level of activity in the first quarter of 2014 associated with the company's Phase 1/2 clinical trial using
its H7N9 candidate and Matrix-M adjuvant and preliminary manufacturing work for its Phase 2 seasonal clinical trial under the HHS
BARDA contract and the PATH amendment to support the company's Phase 2 clinical trial in women of childbearing age.
Research and development expenses increased
57% to $14.5 million in the first quarter of 2014, compared to $9.3 million for the same period in 2013, primarily as a result
of higher employee-related costs tied to continued growth in support of the Company's RSV and influenza vaccine programs,
as well as Novavax AB research and development expenses. General and administrative expenses increased 50% to $4.3 million in the
first quarter of 2014 as compared to $2.9 million for the same period in 2013, resulting from higher professional fees and employee-related
costs, as well as Novavax AB general and administrative expenses.
As of March 31, 2014, the company had $112.8
million in cash and cash equivalents and investments compared to $133.1 million as of December 31, 2013. Net cash used in operating
activities for the first quarter of 2014 was $20.4 million compared to $10.6 million for the same period in 2013. The increase
in cash usage from the prior year was primarily due to higher research and development spending, including the company's
RSV clinical trial and higher employee-related costs, as well as timing of customer and vendor payments.
Novavax management will host its quarterly
conference call today at 4:30 p.m. EDT. The dial-in number for the conference call is 1 (877) 212-6076 (U.S. or Canada) or 1 (707)
287-9331 (international). A webcast of the conference call can also be accessed via a link on the home page of the Novavax website
(novavax.com) or through the "Investor Info"/"Events" tab on the Novavax website.
A replay of the conference call will be
available starting at 7:30 p.m. on May 7, 2014 until midnight June 7, 2014. To access the replay by telephone, dial 1 (855) 859-2056
(domestic) or 1 (404) 537-3406 (international) and use passcode 34845350. The replay will also be available as a webcast and can
be found on the "Investor Info"/"Events" on the Novavax website.
Novavax, Inc. (Nasdaq: NVAX) is a clinical-stage
biopharmaceutical company creating novel vaccines and vaccine adjuvants to address a broad range of infectious diseases worldwide.
Using innovative proprietary recombinant nanoparticle vaccine technology, the company produces vaccine candidates to efficiently
and effectively respond to both known and newly emergent diseases. Additional information about Novavax is available on the company's
website, novavax.com.
Novavax Inc., Forward-Looking Statements
Statements herein relating to the future
of Novavax and the ongoing development of its vaccine and adjuvant products are forward-looking statements. Novavax cautions that
these forward looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially
from those expressed or implied by such statements. These risks and uncertainties include those identified under the heading "Risk
Factors" in the Novavax Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange
Commission (SEC). We caution investors not to place considerable reliance on the forward-looking statements contained in this press
release. You are encouraged to read our filings with the SEC, available at sec.gov, for a discussion of these and other risks and
uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake
no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including
those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2014 | 2013 | |||||||
| (unaudited) | ||||||||
| Revenue | $ | 7,462 | $ | 3,833 | ||||
| Costs and expenses: | ||||||||
| Cost of government contracts revenue | 3,021 | 1,712 | ||||||
| Research and development | 14,518 | 9,256 | ||||||
| General and administrative | 4,308 | 2,870 | ||||||
| Total costs and expenses | 21,847 | 13,838 | ||||||
| Loss from operations | (14,385 | ) | (10,005 | ) | ||||
| Interest income (expense), net | (40 | ) | 26 | |||||
| Realized gains on investments | 615 | - | ||||||
| Loss from operations before income tax expense | (13,810 | ) | (9,979 | ) | ||||
| Income tax expense | - | 17 | ||||||
| Net loss | $ | (13,810 | ) | $ | (9,996 | ) | ||
| Basic and diluted net loss per share | $ | (0.07 | ) | $ | (0.07 | ) | ||
| Basic and diluted weighted average number of common shares outstanding | 208,927 | 148,448 |
SELECTED CONSOLIDATED BALANCE SHEET
| March 31, 2014 | December 31, 2013 | |||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ | 109,921 | $ | 119,471 | ||||
| Investments | 2,907 | 13,597 | ||||||
| Total current assets | 128,873 | 145,001 | ||||||
| Working capital | 115,158 | 126,879 | ||||||
| Total assets | 218,599 | 235,125 | ||||||
| Total notes payable and capital lease obligations | 2,009 | 2,184 | ||||||
| Total stockholders' equity | 191,060 | 203,234 |
Chief Financial Officer and Treasurer