Novavax shares jump after Covid vaccine maker posts surprise quarterly profit

Shares of Novavax jumped arsenic overmuch arsenic 20% successful premarket trading Tuesday aft the Covid vaccine shaper reported a astonishment second-quarter profit.

The results travel arsenic Novavax works to fortify its fiscal position, peculiarly aft it raised doubts astir its quality to enactment successful concern earlier this year. The institution is pinning its hopes connected the motorboat of its updated Covid changeable this fall, a planetary cost-cutting propulsion launched successful May and a promising vaccine pipeline to assistance it enactment afloat. 

Here's what Novavax reported compared with Wall Street's expectations, based connected a survey of analysts by Refinitiv. 

Novavax posted a nett income of $58 million, oregon 58 cents per share, for the quarter. That compares with a nett nonaccomplishment of $510.5 million, oregon $6.53 per share, reported during the aforesaid 4th past year. 

The biotech institution generated second-quarter income of $424.4 million, up from the $185.9 cardinal from the aforesaid play a twelvemonth ago. 

Novavax CEO John Jacobs told CNBC that the institution pulled guardant immoderate income that "might person drifted" into the 3rd 4th from anterior Covid vaccine acquisition agreements, recognizing those income alternatively successful the 2nd quarter. 

He noted that determination volition beryllium "little to nary sales" successful the 3rd 4th due to the fact that the Food and Drug Administration won't marque a determination connected Novavax's caller Covid changeable until precocious September. The institution tin lone commencement rolling retired the vaccine to the nationalist aft a imaginable support from the agency. 

Most of Novavax's gross successful the 3rd 4th volition travel from grants, according to Jacobs. He said the institution volition compression "most of the seasonal opportunity" of its caller changeable into the 4th quarter, erstwhile the federation typically sees Covid cases and vaccinations peak. 

The institution lowered its full-year gross forecast to $1.3 cardinal to $1.5 billion, down somewhat from the $1.4 cardinal to $1.6 cardinal guidance provided successful May. 

But Jacobs noted that the accommodation reflects portion of a currency colony the Canadian authorities agreed to wage for forfeiting Covid vaccine doses that were antecedently scheduled for delivery.

The caller guidance does not see $100 cardinal successful currency that Canada paid during the 2nd 4th – an magnitude that "would person been revenue" had the parties completed the transaction, helium said.

"We're inactive connected way for the revenue, but we'd alternatively person it successful cash," Jacobs told CNBC. "That's a bully happening for Novavax." 

Novavax besides said it's continuing to execute its planetary cost-cutting plan, which involves slashing 25% of the company's workforce and consolidating the company's facilities and infrastructure, among different efforts. 

The program is expected to trim 2024 probe and improvement arsenic good arsenic selling, wide and administrative expenses costs by astir 40% to 50% compared with 2022. SG&A expenses usually see the costs of promoting, selling and delivering a company's products and services.

The institution reported R&D expenses of $258 cardinal and SG&A expenses of $162 cardinal past year.

Novavax volition clasp a league telephone with investors astatine 8:30 americium ET.