Novavax Reports First Quarter 2016 Financial Results Gaithersburg, MD

Novavax Reports First Quarter 2016 Financial

MD, May 4, 2016 - Novavax, Inc., (Nasdaq:NVAX) a clinical-stage vaccine company focused on the discovery, development and

commercialization of recombinant nanoparticle vaccines and adjuvants, today announced its financial results for the first quarter

ended March 31, 2016.

First Quarter Achievements:

the first quarter, we continued to successfully execute on our two ongoing pivotal Phase 3 trials of our RSV F Vaccine. We also

raised $325 million in a successful Convertible Senior Notes offering, which strengthens Novavax' balance sheet ahead of

data from the pivotal Phase 3 Resolve clinical trial," said Stanley C. Erck, President and CEO. "We are pleased to

see significant interest from a number of multinational, world-class vaccine companies seeking potential partnership and commercialization

rights to our RSV F Vaccine franchise outside of North America. We remain well positioned to announce value creating data from

the Resolve trial and the Phase 2 rollover trial in older adults in 2016."

Results for the Three Months Ended March 31, 2016

reported a net loss of $77.3 million, or $0.29 per share, for the first quarter of 2016, compared to a net loss of $24.4 million,

or $0.10 per share, for the first quarter of 2015.

revenue in the first quarter of 2016 decreased 57% to $4.2 million, compared to $9.9 million for the same period in 2015. Lower

revenue under the HHS BARDA contract of $7.3 million is the primary driver of this decrease. The lower HHS BARDA revenue is the

result of a lower level of activity in the three months ended March 31, 2016, as compared to the same period in 2015, along with

a one-time revenue recognition of $3.1 million in the first quarter of 2015. This decrease in HHS BARDA revenue was partially offset

by $1.6 million in revenue recorded under the BMGF grant relating to our ongoing Prepare clinical trial.

and development expenses increased 143% to $69.0 million in the first quarter of 2016, compared to $28.3 million for the same period

in 2015. The increase in research and development expenses was primarily due to increased costs associated with the clinical

trials and development activities of our RSV F Vaccine and higher employee-related costs,

including non-cash stock-based compensation.

and administrative expenses increased 80% to $10.5 million in the first quarter of 2016, compared to $5.8 million for the same

period in 2015. The increase was primarily due to higher employee-related costs, including non-cash stock-based compensation expense,

and professional fees for pre-commercialization activities, as compared to the same period in 2015.

income (expense), net for the first quarter of 2016 includes $2.1 million of interest expense relating the Company's Convertible

Senior Notes offering.

of March 31, 2016, the company had $433.9 million in cash and cash equivalents and marketable securities compared to $230.7 million

as of December 31, 2015. Net cash used in operating activities for the first quarter of 2016 was $69.8 million, compared to $30.5

million for same period in 2015. The increase in cash usage was primarily due to increased costs relating to our RSV F Vaccine,

higher employee-related costs and timing of vendor payments. As previously mentioned, Novavax completed a $325 million Convertible

Senior Notes offering in the first quarter of 2016.

management will host its quarterly conference call today at 4:30 p.m. ET. The dial-in number for the conference call is (877)

212-6076 (Domestic) or (707) 287-9331 (International),

passcode 95870834. 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

replay of the conference call will be available starting at 7:00 p.m. on May 4, 2016 until midnight May 11, 2016. To access the

replay by telephone, dial (855) 859-2056 (Domestic) or (404) 537-3406

(International) and use passcode 95870834. 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

vaccine company committed to delivering novel products to prevent a broad range of infectious diseases. Our recombinant nanoparticles

and Matrix-M adjuvant technology are the foundation for groundbreaking innovation that improves global health through safe

and effective vaccines. Additional information about Novavax is available on the Company's website, novavax.com.

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, 2015 as 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share information)

SELECTED CONSOLIDATED BALANCE SHEET DATA

SVP, Chief Financial Officer and Treasurer

Andrea N. Flynn, Ph.D.

Associate Director, Investor Relations

Todd Davenport, Ph.D.