Novavax, Inc. reported significant financial results for the three and nine months ended September 30, 2024, reflecting a challenging market environment and strategic shifts within the company. Total revenue for the third quarter was $84.5 million, a decrease of $102.5 million from $186.9 million in the same period of 2023. For the nine months, revenue fell to $593.9 million from $692.4 million year-over-year. The decline in revenue was primarily attributed to a substantial drop in grant revenue, which fell to zero from $164.9 million in Q3 2023, as the full contract funding under a U.S. government agreement was recognized by the end of 2023.

Product sales for Q3 2024 were $38.2 million, a notable increase from $2.2 million in Q3 2023, driven by the commercial sales of the COVID-19 vaccine. Licensing, royalties, and other revenue also rose to $46.3 million from $19.8 million, largely due to $32.7 million from transition services and technology transfer under the Sanofi Collaboration and Licensing Agreement (CLA). For the nine months, product sales decreased to $140.4 million from $279.9 million, while licensing and royalties surged to $453.4 million from $23.0 million, reflecting the impact of the Sanofi CLA.

Total expenses for Q3 2024 were $218.5 million, down from $312.6 million in the prior year, with significant reductions in research and development (R&D) and selling, general, and administrative (SG&A) expenses. R&D expenses decreased to $87.2 million from $106.2 million, while SG&A expenses fell to $70.7 million from $107.5 million. The net loss for Q3 2024 was $121.3 million, or $0.76 per share, compared to a net loss of $130.8 million, or $1.26 per share, in Q3 2023.

As of September 30, 2024, Novavax reported total current assets of $1.1 billion, a decrease from $1.14 billion at the end of 2023. Cash and cash equivalents increased slightly to $573.6 million, while accounts receivable and inventory saw significant declines. The company also reported a total stockholders’ deficit of $526.4 million, an improvement from $716.9 million at the end of 2023.

Strategically, Novavax has focused on its COVID-19 vaccine pipeline, including collaborations with Sanofi and the Serum Institute of India. The company has also implemented cost restructuring measures to extend its cash runway and align with its transition to the Sanofi partnership. In May 2024, Novavax entered into a co-commercialization agreement with Sanofi, which included a $500 million upfront payment and potential milestone payments totaling up to $700 million. The company is also exploring partnerships to advance its vaccine candidates, including a COVID-Influenza Combination vaccine and a stand-alone influenza vaccine.