Full Press Release Details
Novavax Reports Third Quarter 2016 Financial
MD, November 9, 2016 - Novavax, Inc., (Nasdaq:NVAX) today announced its financial results for the third quarter and nine
months ended September 30, 2016, in conjunction with its Investor and Analyst Day update.
Company presented a restructuring plan designed to meet the following key objectives:
restructuring includes an immediate reduction in workforce of approximately 30%. The Company expects to incur one-time restructuring
costs of approximately $3 million to $4 million, including severance expenses, in the fourth quarter of 2016. In addition, management
has initiated expense reduction measures relating to pre-commercialization activities, capital equipment investments, project specific
and general research and development, and general and administrative expenses. As a result of the restructuring, Novavax estimates
a reduction in cash burn of $70 million to $100 million in 2017 relative to 2016.
restructuring plan was engineered to decrease cash burn and support the Company's development priorities through the balance
of 2016 and in 2017, specifically:
have identified a clear path forward that we expect will provide us with important clinical data throughout 2017 and protect liquidity,"
said Stanley C. Erck, President and CEO. "We have the balance sheet to execute this plan. We have resized our organization
consistent with this plan and look forward to reporting data from these programs in 2017. We continue to have great confidence
in our platform technology, our RSV F Vaccine and the significant commercial opportunity for an RSV vaccine for infants via maternal
Results for the Three and Nine Months Ended September 30, 2016
reported a net loss of $66.3 million, or $0.24 per share, for the third quarter of 2016, compared to a net loss of $33.1 million,
or $0.12 per share, for the third quarter of 2015. For the nine months ended September 30, 2016, the net loss was $222.9 million,
or $0.82 per share, compared to a net loss of $78.1 million, or $0.30 per share, for the same period in 2015.
revenue in the third quarter of 2016 decreased 50% to $3.2 million, compared to $6.5 million for the same period in 2015. Lower
revenue under the HHS BARDA contract of $6.2 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 September 30, 2016, primarily resulting from the natural expiration
of the HHS BARDA contract, as compared to the same period in 2015. This decrease in HHS BARDA revenue was partially offset by $2.6
million in revenue recorded under the BMGF grant relating to our ongoing Prepare clinical trial.
and development expenses increased 73% to $53.0 million in the third quarter of 2016, compared to $30.7 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 50% to $13.6 million in the third quarter of 2016, compared to $9.1 million for the same
period in 2015. The increase was primarily due to higher employee-related costs and professional fees for pre-commercialization
activities, as compared to the same period in 2015.
income (expense), net for the third quarter of 2016 includes $3.4 million of interest expense relating the Company's Convertible
Senior Notes offering in the first quarter of 2016.
of September 30, 2016, the company had $300.3 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 nine months of 2016 was $194.2 million, compared
to $71.3 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.
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 10126707. 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 November 9, 2016 until midnight November 16, 2016. To
access the replay by telephone, dial (855) 859-2056 (Domestic) or (404) 537-3406 (International) and use passcode 10126707.
The replay will also be available as a webcast and can be found on the "Investor Info"/"Events" on the Novavax
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, as well as the effectiveness, and expected costs and
savings, and the timing of such costs and savings, associated with the implementation, of Novavax' recently announced plan
to restructure its operations, 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 uncertainties.
CONDENSED CONSOLIDATED STATEMENTS OF
(in thousands, except per share information)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| (unaudited) | (unaudited) | |||||||||||||||
| Revenue | $ | 3,231 | $ | 6,525 | $ | 9,954 | $ | 30,397 | ||||||||
| Expenses: | ||||||||||||||||
| Research and development | 52,983 | 30,664 | 186,839 | 86,740 | ||||||||||||
| General and administrative | 13,556 | 9,060 | 38,183 | 21,991 | ||||||||||||
| Total expenses | 66,539 | 39,724 | 225,022 | 108,731 | ||||||||||||
| Loss from operations | (63,308 | ) | (33,199 | ) | (215,068 | ) | (78,334 | ) | ||||||||
| Interest income (expense), net | (2,957 | ) | 130 | (7,756 | ) | 324 | ||||||||||
| Other income (expense) | 11 | (51 | ) | (33 | ) | (121 | ) | |||||||||
| Net loss | $ | (66,254 | ) | $ | (33,120 | ) | $ | (222,857 | ) | $ | (78,131 | ) | ||||
| Basic and diluted net loss per share | $ | (0.24 | ) | $ | (0.12 | ) | $ | (0.82 | ) | $ | (0.30 | ) | ||||
| Basic and diluted weighted average number of shares outstanding | 271,064 | 269,554 | 270,669 | 259,703 |
SELECTED CONSOLIDATED BALANCE SHEET DATA
| September 30, 2016 | December 31, 2015 | |||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ | 119,948 | $ | 93,108 | ||||
| Marketable securities | 180,335 | 137,548 | ||||||
| Total current assets | 353,905 | 287,257 | ||||||
| Working capital | 278,221 | 210,763 | ||||||
| Total assets | 459,626 | 386,038 | ||||||
| Total notes payable and capital lease obligations | 316,083 | 503 | ||||||
| Total stockholders' equity | 49,784 | 292,669 |
SVP, Chief Financial Officer and Treasurer
Andrea N. Flynn, Ph.D.
Associate Director, Investor Relations
Todd Davenport, Ph.D.