Novavax Reports Third Quarter 2015 Financial

Novavax Reports Third Quarter 2015 Financial

Gaithersburg, Md., November 9, 2015 -

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 third quarter and nine months ended

Novavax Third Quarter and Subsequent

Today's Announcement

Near-term Anticipated Events

"The initiation of the first Phase

3 trial of our RSV F Vaccine in older adults underscores our accomplishments to date and positions the company to bring the first

RSV vaccine to market. Our recent data announcements demonstrate the safety and robust immunogenicity of the RSV F Vaccine across

all three target populations: older adults; infants via maternal immunization; and pediatrics," said Gregory Glenn, M.D.,

Senior Vice President, Research and Development. "Our Phase 2 trial of the RSV F Vaccine in older adults was the first to

demonstrate efficacy of an active RSV immunization in any clinical trial population. In addition, data from pregnant women in

their third trimester provided an important safety data and proof-of-concept for maternal immunization, with a high level of transplacental

"During the third quarter, we delivered

positive results from five key clinical programs including our RSV F Vaccine for older adults, infants via maternal immunization

and pediatrics, as well as our Seasonal Influenza Vaccine, and our Ebola GP Vaccine. These results, coupled with today's

initiation of our Phase 3 trial of our RSV F Vaccine in older adults, demonstrate Novavax' ability to successfully advance

our clinical stage programs along aggressive timelines," said Stanley C. Erck, President and CEO. "With successful

phase 2 results, and consistent execution, the Company is well-positioned to begin our second phase 3 trial in pregnant women

in the first quarter of 2016."

Financial Results for the Three and

Nine Months Ended September 30, 2015

Novavax reported a net loss of $33.1 million,

or $0.12 per share, for the third quarter of 2015, compared to a net loss of $19.7 million, or $0.08 per share, for the third

quarter of 2014. For the nine months ended September 30, 2015, the net loss was $78.1 million, or $0.30 per share, compared to

a net loss of $51.4 million, or $0.23 per share, for the same period in 2014.

Novavax revenue in the third quarter of

2015 decreased 21% to $6.5 million, compared to $8.2 million for the same period in 2014. This decrease results from a lower level

of development activities under the HHS BARDA contract in the third quarter of 2015 as compared to the same period in 2014.

The cost of government contracts revenue

in the third quarter of 2015 decreased 32% to $2.7 million, compared to $4.0 million for the same period in 2014. The decrease

in cost of government contracts revenue was associated with a lower level of development activities under the HHS BARDA contract

in the third quarter of 2015 as compared to the same period in 2014.

Research and development expenses increased

45% to $27.9 million in the third quarter of 2015, compared to $19.2 million for the same period in 2014. The increase in research

and development expenses was driven by activities relating to the RSV Vaccine and higher employee-related expenses, including

non-cash stock-based compensation, tied to the continued growth of the company.

General and administrative expenses increased

90% to $9.1 million in the third quarter of 2015, compared to $4.8 million for the same period in 2014. The increase in general

and administrative expenses 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 activities.

As of September 30, 2015, the company

had $290.2 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 the nine months of 2015 was $71.3 million, compared to $47.2 million for the same period

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

RSV F Vaccine, Ebola GP Vaccine and higher employee-related expenses, as well as the timing of customer and vendor payments.

Novavax 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 (U.S. or Canada) or 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 11:00 a.m. on November 9, 2015 until midnight November 16, 2015. To access the replay by telephone, dial

855-859-2056 (Domestic) or 404-537-3406 (International) and use passcode 70778771. 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, 2014 and our Quarterly Reports on Form

10-Q for the quarters ended March 31, 2015 and June 30, 2015, 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.

SELECTED CONSOLIDATED BALANCE SHEET

SVP, Chief Financial Officer and Treasurer

Andrea N. Flynn, Ph.D.

Senior Manager, Investor Relations

Todd Davenport, Ph.D.