Full Press Release Details
Novavax Reports Third Quarter 2017 Financial
MD, November 7, 2017 - Novavax, Inc., (Nasdaq: NVAX) today announced its financial results for the third quarter and nine
months ended September 30, 2017.
Quarter Achievements:
were very pleased to initiate and fully enroll the Phase 1/2 clinical trial of our NanoFlu vaccine candidate in older adults, following
impressive results in preclinical challenge models. Given this timing, we are well positioned to announce data from the ongoing
trial before the end of the year," said Stanley C. Erck, President and CEO. "We also continue to make significant
progress in our RSV F Vaccine program, highlighted by the continued execution of the Phase
3 Prepare trial for infants via maternal immunization. We are also evaluating plans to conduct a clinical trial for older
Results for the Three and Nine Months Ended September 30, 2017
reported a net loss of $44.6 million, or $0.15 per share, for the third quarter of 2017, compared to a net loss of $66.3 million,
or $0.24 per share, for the third quarter of 2016. For the nine months ended September 30, 2017, the net loss was $132.9 million,
or $0.47 per share, compared to a net loss of $222.9 million, or $0.82 per share, for the same period in 2016.
revenue in the third quarter of 2017 was $8.4 million, compared to $3.2 million in the same period in 2016. This 158% increase
was driven by higher revenue recorded under the BMGF grant of $89 million.
and development expenses decreased 21% to $41.9 million in the third quarter of 2017, compared to $53.0 million for the same period
in 2016. The decrease was primarily due to reduced activities related to the development of the RSV F Vaccine for older adults,
other general R&D project-related expenses and lower employee-related costs.
and administrative expenses decreased 40% to $8.1 million in the third quarter of 2017, compared to $13.6 million for the same
period in 2016. The decrease was primarily due to lower professional fees for pre-commercialization activities and lower employee-related
income (expense), net for the third quarter of 2017 and 2016 was ($3.0) million.
of September 30, 2017, the company had $172.6 million in cash, cash equivalents and marketable securities, compared to $235.5
million as of December 31, 2016. Net cash used in operating activities for the first nine months of 2017 was $106.6 million,
compared to $194.2 million for the same period in 2016. The decrease in cash usage was primarily due to decreased costs
relating to our RSV F Vaccine and lower overall employee-related costs.
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 2479419. A replay of the conference call will be available starting at 7:30
p.m. ET on November 7, 2017 until 7:30 pm ET on November 14, 2017. To access the replay by telephone, dial (855) 859-2056 (Domestic)
or (404) 537-3406 (International) and use passcode 2479419.
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 webcast will be available through
the "Investor Info"/"Events" tab on the Novavax website until February 7, 2018.
Novavax, Inc. (Nasdaq:NVAX) is a clinical-stage
biotechnology 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, 2016 and the Quarterly Report on Form
10-Q for the period ended September 30, 2017, both 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 OPERATIONS
(in thousands, except per share information)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenue | $ | 8,352 | $ | 3,231 | $ | 20,764 | $ | 9,954 | ||||||||
| Expenses: | ||||||||||||||||
| Research and development | 41,862 | 52,983 | 118,779 | 186,839 | ||||||||||||
| General and administrative | 8,118 | 13,556 | 25,911 | 38,183 | ||||||||||||
| Total expenses | 49,980 | 66,539 | 144,690 | 225,022 | ||||||||||||
| Loss from operations | (41,628 | ) | (63,308 | ) | (123,926 | ) | (215,068 | ) | ||||||||
| Interest income (expense), net | (2,989 | ) | (2,957 | ) | (9,021 | ) | (7,756 | ) | ||||||||
| Other income (expense) | 10 | 11 | 20 | (33 | ) | |||||||||||
| Net loss | $ | (44,607 | ) | $ | (66,254 | ) | $ | (132,927 | ) | $ | (222,857 | ) | ||||
| Basic and diluted net loss per share | $ | (0.15 | ) | $ | (0.24 | ) | $ | (0.47 | ) | $ | (0.82 | ) | ||||
| Basic and diluted weighted average | ||||||||||||||||
| number of common shares outstanding | 296,435 | 271,064 | 284,767 | 270,669 |
SELECTED CONSOLIDATED BALANCE SHEET DATA
| September 30, 2017 | December 31, 2016 | |||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ | 104,245 | $ | 144,353 | ||||
| Marketable securities | 68,321 | 91,126 | ||||||
| Total current assets | 225,995 | 287,830 | ||||||
| Working capital | 157,718 | 221,424 | ||||||
| Total assets | 334,077 | 394,301 | ||||||
| Total notes payable and capital lease obligation | 317,407 | 316,376 | ||||||
| Total stockholders' deficit | (74,151 | ) | (5,546 | ) |
Andrea N. Flynn, Ph.D.
Director, Investor & Media Relations