Novavax Warns Investors it May Not be Able to Continue Operations

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In its Q4 and full-year 2022 financial report, Novavax expressed doubts about its ability to continue operations beyond February 2024. 

Given cash flow and 2023 revenue uncertainties, “substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued,” the vaccine maker stated in the report, issued Tuesday.

These uncertainties include continued funding from the U.S. government and pending arbitration related to Gavi.

The global vaccine alliance stated it reserves “its rights to recover the advance payments” made to Novavax as part of an Advance Purchase Agreement, according to Reuters. 

The company’s top priority is to deliver its updated COVID-19 vaccine for the fall 2023 season.

While Novavax has had a tumultuous vaccine campaign with multiple delays during the pandemic, the company vowed to deliver up to 1.5 million additional vaccine doses of its COVID-19 vaccine, Nuvaxovid, in an extended agreement with the U.S. government announced in February 2023.

Novavax received Emergency Use Authorization from the FDA for the adjuvanted vaccine as a booster for adults in October 2022. During clinical trials, the vaccine increased antibody levels significantly compared to pre-injection levels.

This report comes nearly two months after the appointment of John Jacobs as president and CEO. Jacobs outlined three priorities for the company to continue as a going concern:

1. To deliver its vaccine for the fall vaccination season,

2. cut spending and

3. leverage its other technology and assets beyond Nuvaxovid.

“We believe that if we succeed in executing against these priorities, we will position the company well for long-term success,” Jacobs said in a statement Tuesday.

Jacobs added that Novavax has been spending at a hot rate and plans to cut  back - which will likely including job cuts, according to Reuters. 

BioSpace reached out to Novavax regarding this statement and was referred to Jacobs' three priorities.

"We believe that if we succeed in executing against these priorities, we will position the company well for long-term success," a company representative said.  

Novavax has more than 1,500 employees. The company's website lists 24 available positions at its headquarters in Gaithersburg, Maryland. 

In its report, Novavax also reported that R&D chief, Gregory Glenn, will retire and move into a consulting role. Filip Dubovsky, executive vice president, will assume the role of president, R&D.  

This, along with several other C-Suite moves, were made to "better align internal resources and operate more efficiently," according to Tuesday's press release. 

Novavax brought in $357 million during the fourth quarter and $2 billion in 2022 overall.