The vaccine company posted its first profitable quarter, but shares were down on Tuesday as earnings fell short of Wall Street estimates.
Novavax (ticker: NVAX) shares tumbled more than 20% in premarket trade to $42.50 after the company’s first-quarter earnings of $2.56 a share fell short of Wall Street expectations of $2.69. Novavax has lost $3.05. in the previous year.
The quarter’s revenue of $704 million fell short of analysts’ expectations of $845.2 million.
The company reported $96 million in selling, general, and administrative expenses in the first quarter, up from $63 million the year before. Support for the commercial launch of its Covid vaccine candidate NVX-CoV2373 increased costs, according to the business. The FDA said that it would hold a meeting on June 7 to discuss the vaccination. The vaccination has been authorised in certain other countries.
Novavax stated on a conference call with analysts that it expects shipments to key markets to improve in the second quarter, as well as increased product revenue.
It also stated that it continues to see low vaccination rates in low-income countries, and that it was prepared to deliver doses of its Covid vaccine to Gavi, the Vaccine Alliance, but that it has “yet received an order from Gavi,” and that “the timing and quantities of future orders to deliver NVX-CoV2373 to the Covax facility are unclear.”
Novavax stated that revenue will be between $4 and $5 billion in 2022.