Novavax Reports Fourth Quarter and Year-End 2015 Financial Results Gaithersburg, Md.

Novavax Reports Fourth Quarter and Year-End

2015 Financial Results

Md., February 29, 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 fourth

quarter and twelve months ended December 31, 2015.

Fourth Quarter Achievements:

the fourth quarter, we initiated two pivotal Phase 3 trials of our RSV F Vaccine, and subsequently completed enrollment of our

Resolve trial in older adults. We expect to announce value-creating data from the Resolve trial and the Phase 2 rollover trial

in older adults in 2016," said Stanley C. Erck, President and CEO. "In addition, we recently strengthened our balance

sheet through the successful completion of a convertible note offering, providing the necessary resources for the continued execution

of our business plan."

Results for the Three and Twelve Months Ended December 31, 2015

reported a net loss of $78.8 million, or $0.29 per share, for the fourth quarter of 2015, compared to a net loss of $31.5 million,

or $0.13 per share, for the fourth quarter of 2014. For the twelve months ended December 31, 2015, the net loss was $156.9 million,

or $0.60 per share, compared to a net loss of $82.9 million, or $0.37 per share, for the same period in 2014.

revenue in the fourth quarter of 2015 decreased 13% to $5.9 million, compared to $6.7 million for the same period in 2014. Revenue

for the full year 2015 increased 18% to $36.3 million, compared to $30.7 million in 2014. The increase in full year revenue results

from the recovery of additional costs under the BARDA contract of $7.7 million for the settlement of indirect rates for fiscal

years 2011 and 2012 and $3.1 million relating to the Company's prior Phase 2 clinical trial of our quadrivalent seasonal

influenza VLP vaccine candidate in Australia as collection of the amount became reasonably assured in 2015. These increases in

revenue were partially offset by a decrease in revenue resulting from a lower level of development activities under the BARDA contract

and our prior PATH agreement, as compared to 2014.

We have historically recorded certain reimbursable

research and development costs incurred under our government contracts in a line item titled "Cost of government contracts

revenue." Those costs are included in "Research and development expenses" for all periods presented in this

press release and in the 2015 Annual Report on Form 10-K to be filed with the SEC.

and development expenses increased 128% to $75.9 million in the fourth quarter of 2015, compared to $33.3 million for the same

period in 2014. For the full year 2015, research and development expenses increased 72% to $162.6 million, compared to $94.4 million

in 2014. The increase in research and development expenses for the full year 2015 was driven by costs related to the initiation

of our two pivotal Phase 3 clinical trials and Phase 2 rollover trial of the RSV F Vaccine and higher employee-related costs, including

non-cash stock-based compensation, tied to the continued growth of the company. This increase was partially offset by a lower level

of development activities under the BARDA contract.

and administrative expenses increased 75% to $8.9 million in the fourth quarter of 2015, compared to $5.1 million for the same

period in 2014. For the full year 2015, general and administrative expenses increased 55% to $30.8 million, compared to $19.9 million

in 2014. The increase in general and administrative expenses for the full year 2015 resulted from increased employee-related expenses,

including non-cash stock-based compensation, tied to the continued growth of the company and professional fees for pre-commercialization

of December 31, 2015, the company had $230.7 million in cash and cash equivalents and marketable securities compared to $168.1

million as of December 31, 2014. Net cash used in operating activities for 2015 was $126.1 million, compared to $67.0 million for

2014. The factors contributing to the change in operating cash usage were primarily due to increased costs relating to our RSV

F Vaccine and higher employee-related expenses, as well as the timing of customer and vendor payments. Subsequent to year-end 2015,

Novavax completed its offering of Convertible Senior Notes mentioned above.

management will host its quarterly conference call today at 8:00 a.m. EST. The dial-in number for the conference call is (877)

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

passcode 45346424. 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 11:00 a.m. on February 29, 2016 until midnight March 7, 2015. To access

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

and use passcode 45346424. 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 to be 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.

Senior Manager, Investor Relations

Todd Davenport, Ph.D.