Novavax Narrows Q3 Loss, Raises 2026 Revenue Framework

Novavax Inc. (NVAX) sharply narrowed its third-quarter loss as lower research and administrative spending offset a modest decline in revenue, while a $125 million milestone earned after the quarter prompted the vaccine developer to raise its full-year 2026 revenue framework.

The company reported a third-quarter net loss of $31 million, or $0.19 per share, compared with a loss of $202 million, or $1.25 per share, a year earlier. The prior-year period included a $97 million impairment charge and a $29 million loss on debt extinguishment. Novavax’s operating loss narrowed to $31 million from $178 million.

Total revenue decreased 3% to $68 million from $70 million. Product sales nearly doubled to $26 million from $13 million, but licensing, royalties and other revenue fell to $43 million from $57 million, primarily reflecting lower research and development reimbursements.

Revenue associated with Sanofi totaled $19 million in the quarter, comprising $9 million of upfront payment and R&D milestone amortization, $6 million of royalties and $4 million of R&D cost reimbursements. Novavax also recorded revenue from Takeda, Serum Institute and other partners.

Cost reductions drive narrower loss

Third-quarter GAAP R&D expenses declined to $52 million from $98 million, while selling, general and administrative expenses fell to $24 million from $32 million. Combined GAAP R&D and SG&A expenses dropped 41% to $76 million.

On a non-GAAP basis, combined R&D and SG&A expenses, net of partner reimbursements, decreased 14% to $72 million from $84 million. Total expenses fell to $100 million from $248 million, with the comparison also benefiting from the absence of the prior-year impairment charge.

As of Sept. 30, Novavax had $676 million in cash and accounts receivable. The company expects its available resources to support operations into 2029, based on that balance, the $125 million Sanofi milestone earned in October, an anticipated $75 million technology-transfer milestone in mid-2027 and future partner reimbursements. The estimate does not include additional potential cash flow.

Full-year revenue framework raised

Novavax increased its 2026 adjusted total revenue framework to $385 million to $415 million from $235 million to $275 million. The new range includes the $125 million milestone earned when Sanofi initiated a Phase 3 trial in Europe for its combined influenza and COVID-19 vaccine candidate.

The framework also includes $40 million to $50 million of Nuvaxovid product sales, $50 million to $60 million of adjusted supply sales and $170 million to $180 million of adjusted licensing, royalties and other revenue. Adjusted total revenue excludes Sanofi supply sales, Sanofi royalties and future Sanofi milestones.

Novavax narrowed its 2026 GAAP combined R&D and SG&A expense guidance to $375 million to $395 million from $370 million to $410 million. Its non-GAAP combined R&D and SG&A forecast, net of $60 million in expected R&D reimbursements, is now $315 million to $335 million, compared with the previous range of $310 million to $340 million.

The company is targeting non-GAAP combined R&D and SG&A expenses of about $225 million in 2027 and between $150 million and $200 million in 2028. Novavax said it could record up to $35 million of non-cash fixed-asset write-offs in 2027 as it pursues a reduction of more than 50% in its facilities footprint.

Partnerships and pipeline remain central

Sanofi and Takeda launched an XFG-adapted Nuvaxovid formulation for the 2026-2027 vaccination season in the U.S., European Union, Japan and selected other markets. Sanofi also intends to begin a U.S. Phase 3 trial of its combined influenza and COVID-19 vaccine in 2027 to support a potential U.S. approval. Subject to successful completion of U.S. clinical and regulatory requirements, Novavax could receive a further $225 million milestone upon the product’s U.S. launch.

Novavax is focusing its internal R&D on generating data that could support additional partnerships involving its Matrix-M adjuvant platform. Current work includes studies combining Matrix-M with licensed vaccines, preclinical infectious-disease programs and early oncology research. The company also expects its multivalent C. difficile vaccine candidate could enter clinical development as early as 2027, primarily with the intention of out-licensing the program.

Longer term, Novavax is targeting non-GAAP profit-and-loss profitability as early as 2029, although it said the timing depends significantly on Sanofi’s potential U.S. launch of the combined influenza and COVID-19 vaccine. The company also aims to settle pandemic-era advance purchase agreement liabilities by the first quarter of 2029 and maintain at least two years of cash runway.

Those objectives remain subject to regulatory, clinical and commercial uncertainty. Novavax identified risks including Sanofi’s ability to maintain regulatory approvals for Nuvaxovid, demand for COVID-19 and influenza vaccination, partner manufacturing and distribution performance, reliance on Serum Institute for Nuvaxovid co-formulation and filling, and the availability of funding. Changes in vaccine policy, reimbursement, trade measures and public perception could also affect results.