Novavax Reports Second Quarter 2021 Financial Results and Operational Highlights Filed regulatory submissions for EUA in India, Indonesia and the Philippines, in partnership with Serum Institute of India Demonstrated gre

Novavax Reports Second Quarter 2021 Financial

Results and Operational Highlights

GAITHERSBURG, Md., August 5, 2021 -- Novavax,

Inc. (NASDAQ: NVAX), a biotechnology company developing next-generation vaccines for serious infectious diseases, today announced its

financial results and operational highlights for the second quarter ended June 30, 2021.

"We are highly encouraged by the filing of

regulatory submissions in multiple markets, made in partnership with Serum Institute of India. We view these submissions as the first

of many filings to come, which will allow NVX-CoV2373 to be made available at a global scale," said Stanley C. Erck, President and

Chief Executive Officer, Novavax. "Our clinical successes over the second quarter reaffirm our confidence in NVX-CoV2373's

differentiated efficacy profile. We continue to see the circulation of new variants and inequitable access to vaccine globally, demanding

that we bring our COVID-19 vaccine to market as swiftly as possible."

Second Quarter 2021 and Recent Highlights

COVID-19 Vaccine Clinical and Non-Clinical Development

COVID-19 Vaccine Regulatory

COVID-19 Vaccine Manufacturing

Novavax to manufacture and distribute 350 million doses

SII to manufacture and distribute the remaining balance of the 1.1 billion doses to low- and middle-income countries

/ NVX-CoV2373 Combination Vaccine (qNIV/CoV2373)

Vaccine / Matrix-M Adjuvant Collaboration

Financial Results for the Three Months Ended

Novavax reported a net loss of $352 million, or

$4.75 per share, for the second quarter of 2021, compared to a net loss of $18 million, or $0.30 per share, for the second quarter of

Novavax revenue in the second quarter of 2021

was $298 million, compared to $36 million in the same period in 2020. This increase was due to increased development activities relating

to NVX-CoV2373 for services performed under the U.S. government and Coalition for Epidemic Preparedness Innovations agreements.

Research and development expenses increased to

$571 million in the second quarter of 2021, compared to $35 million in the same period in 2020. The increase was primarily due to the

development of NVX-CoV2373.

General and administrative expenses increased

to $73 million in the second quarter of 2021, compared to $18 million for the same period in 2020. The increase was primarily due to increased

employee-related costs, stock-based compensation expenses, and professional fees supporting our NVX-CoV2373 program.

As of June 30, 2021, Novavax had $2.1 billion

in cash, cash equivalents and restricted cash, compared to $806 million as of December 31, 2020. Net cash provided by operating activities

for the first six months of 2021 was $807 million, compared to $93 million for the same period in 2020. The increase in cash provided

was primarily due to $1.1 billion in payments under advance purchase agreements recorded as deferred revenue and the timing of payments

Through utilization of At-the-Market (ATM) offerings

during the first six months of 2021, Novavax raised net proceeds of $565 million.

Novavax will host its quarterly conference call

today at 4:30 p.m. ET. The dial-in numbers for the conference call are (866) 652-5200 (Domestic) or (412) 317-6060 (International). Participants

will be prompted to request to join the Novavax, Inc. call. A replay of the conference call will be available starting at 7:30 p.m. ET

on August 5, 2021 until 7:30 p.m. ET on November 12, 2021. To access the replay by telephone, dial (877) 344-7529 (Domestic) or (412)

317-0088 (International) and use passcode 10158313.

A webcast of the conference call can also be accessed

on the Novavax website at novavax.com/events. A replay of the webcast will be available on the Novavax website until November 12, 2021.

NVX-CoV2373 is a protein-based vaccine candidate

engineered from the genetic sequence of the first strain of SARS-CoV-2, the virus that causes COVID-19 disease. NVX-CoV2373 was created

using Novavax' recombinant nanoparticle technology to generate antigen derived from the coronavirus spike (S) protein and is formulated

with Novavax' patented saponin-based Matrix-M adjuvant to enhance the immune response and stimulate high levels of neutralizing

antibodies. NVX-CoV2373 contains purified protein antigen and can neither replicate, nor can it cause COVID-19. In preclinical studies,

NVX-CoV2373 induced antibodies that blocked the binding of spike protein to cellular receptors and provided protection from infection

and disease. It was generally well-tolerated and elicited robust antibody response in Phase 1/2 clinical testing.

NVX-CoV2373 is being evaluated in two pivotal

Phase 3 trials: a trial in the U.K. that demonstrated efficacy of 96.4% against the original virus strain, 86.3% against the

Alpha (B.1.1.7) variant and 89.7% efficacy overall; and the PREVENT-19 trial in the U.S. and Mexico that demonstrated

100% protection against moderate and severe disease and 90.4% efficacy overall. It is also being tested in two ongoing Phase 2 studies

that began in August 2020: A Phase 2b trial in South Africa that demonstrated 55% efficacy overall in HIV-negative

participants and 48.6% efficacy against a newly emerging escape variant first described in South Africa, and a Phase 1/2 continuation

in the U.S. and Australia.

NVX-CoV2373 is stored and stable at 2 - 8 C,

allowing the use of existing vaccine supply chain channels for its distribution. It is packaged in a ready-to-use liquid formulation in

NanoFlu is a recombinant hemagglutinin

(HA) protein nanoparticle influenza vaccine produced by Novavax in its SF9 insect cell baculovirus system. NanoFlu uses HA amino

acid protein sequences that are the same as the recommended wild-type circulating virus HA sequences. NanoFlu contains Novavax'

patented saponin-based Matrix-M adjuvant.

About Matrix-M Adjuvant

Novavax' patented saponin-based

Matrix-M adjuvant has demonstrated a potent and well-tolerated effect by stimulating the entry of antigen-presenting cells into

the injection site and enhancing antigen presentation in local lymph nodes, boosting immune response.

Novavax, Inc. (Nasdaq: NVAX) is a biotechnology

company that promotes improved health globally through the discovery, development and commercialization of innovative vaccines to prevent

serious infectious diseases. The company's proprietary recombinant technology platform combines the power and speed of genetic engineering

to efficiently produce highly immunogenic nanoparticles designed to address urgent global health needs. Novavax is conducting late-stage

clinical trials for NVX-CoV2373, its vaccine candidate against SARSCoV-2, the virus that causes COVID-19. NanoFlu , its quadrivalent

influenza nanoparticle vaccine, met all primary objectives in its pivotal Phase 3 clinical trial in older adults and will be advanced

for regulatory submission. Both vaccine candidates incorporate Novavax' proprietary saponin-based Matrix-M adjuvant to enhance

the immune response and stimulate high levels of neutralizing antibodies.

For more information, visit www.novavax.com

and connect with us on Twitter and LinkedIn.

Forward-Looking Statements

herein relating to the future of Novavax, its operating plans and prospects, the ongoing development of NVX-CoV2373 and other Novavax

vaccine product candidates, timing of future regulatory filings and actions, anticipated manufacturing capacity, and future availability

of NVX-CoV2373 at a global scale are forward-looking statements. Novavax cautions that these forward-looking statements are subject to

numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements.

These risks and uncertainties include challenges satisfying, alone or together with partners, various safety, efficacy, and product characterization

requirements, including those related to process qualification and assay validation, necessary to satisfy applicable regulatory authorities;

difficulty obtaining scarce raw materials and supplies; resource constraints, including human capital and manufacturing capacity, on

the ability of Novavax to pursue planned regulatory pathways; challenges meeting contractual requirements under agreements with multiple

commercial, governmental, and other entities; and those other risk factors identified in the "Risk Factors" and "Management's

Discussion and Analysis of Financial Condition and Results of Operations" sections of Novavax' Annual Report on Form 10-K

for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q, as filed with the Securities and Exchange Commission

(SEC). We caution investors not to place considerable reliance on forward-looking statements contained in this press release. You are

encouraged to read our filings with the SEC, available at www.sec.gov and www.novavax.com,

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)

SELECTED CONSOLIDATED BALANCE SHEET DATA