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    NVAX
    Earnings call· Jun 2026(Q2 FY26)

    NOVAVAX Q2 FY26 earnings call NVAX

    Aug 6, 2026 Source

    Executive summary

    Novavax Q2 FY26 — Strong Partner Momentum and Pipeline Progress

    Novavax reported a quarter marked by significant progress in its partnership strategy, particularly with Sanofi, and continued advancements in its Matrix-M technology platform. The company is successfully executing on its lean operating model, driving substantial cost reductions while strategically investing in R&D to broaden the utility of its adjuvant and generate new partnering opportunities. Management expressed confidence in its diversified revenue strategy and long-term value creation for shareholders.

    Highlights

    5

    • Secured $200 million in potential near-term milestone payments from Sanofi related to combination vaccine Phase III initiation and manufacturing tech transfer.

    • Operating expenses reduced by over 80% from peak, on track for approximately 90% reduction.

    • Four of the top 10 global pharmaceutical companies now have licensing or material transfer agreements for Matrix-M, covering over 30 areas of exploration.

    • Full-year 2026 adjusted total revenue guidance increased by $5 million at midpoint to $255 million.

    • Ended the quarter with $743 million in cash and accounts receivables, extending cash runway into 2029 with Sanofi tech transfer milestone.

    Concerns

    1

    • Potential noncash fixed asset write-off

    Guidance & targets

    10
    CategoryTargetConfidence
    Sanofi combination vaccine Phase III study initiation milestone
    $125 million
    high materiality
    High
    Sanofi manufacturing tech transfer completion milestone
    $75 million
    medium materiality
    High
    Full-year 2026 Adjusted Total Revenues
    $235 million to $275 million
    high materiality
    High
    Full-year 2026 Combined GAAP R&D and SG&A Expense
    $390 million
    medium materiality
    High
    Full-year 2026 Combined Non-GAAP R&D and SG&A Expense (net of partner reimbursements)
    $325 million
    medium materiality
    High
    2028 Combined Non-GAAP R&D and SG&A Expense
    $150 million to $200 million
    high materiality
    High
    Non-GAAP P&L Profitability
    as early as 2028
    high materiality
    Medium
    Pay off pandemic era EPA liabilities
    by the first quarter of 2029
    medium materiality
    High
    Cash Runway
    at least 2 years
    high materiality
    High
    Potential Noncash Fixed Asset Write-off
    up to $35 million
    low materiality
    Medium

    Operational metrics

    16
    Addressable market
    $100 billion
    2030s

    The collective utilization and experimentation with Novavax technology potentially opens the door to a substantial portion of a market projected to reach $100 billion in the 2030s, spanning infectious disease, oncology vaccines and cancer immunotherapeutics.

    Operating expenses reduction
    over 80%from peak
    Current

    To date, we've reduced our operating expenses by more than 80%, and we remain on track to achieve an approximately 90% reduction from our peak.

    Operating expenses reduction target
    approximately 90%from peak
    Future

    To date, we've reduced our operating expenses by more than 80%, and we remain on track to achieve an approximately 90% reduction from our peak.

    Product sales
    $19 million76% year-over-year increase
    Q2 FY26

    The $57 million total revenue recorded in the second quarter of 2026 includes product sales of $19 million, an increase of 76% year-over-year and are driven by demand for our Matrix-M adjuvant by Takeda and Serum Institute.

    Sanofi revenue
    $36 million
    Q2 FY26

    In addition, we recorded Sanofi revenue of $36 million related primarily to R&D cost reimbursements and amortization.

    Net loss
    $53 million
    Q2 FY26

    The second quarter of 2026, we recorded a net loss of $53 million and ended the quarter with $743 million in cash and accounts receivables.

    Cash and accounts receivables balance
    $743 million
    End of Q2 FY26

    The second quarter of 2026, we recorded a net loss of $53 million and ended the quarter with $743 million in cash and accounts receivables.

    Product sales and other partner-related revenue increase
    $20 millionyear-over-year
    Q2 FY26

    Our second quarter 2026 results highlight meaningful improvements to other aspects of our financial performance, including product sales and other partner-related revenue categories that increased by $20 million year-over-year, while cost reductions were the primary driver of an additional $24 million improvement.

    Cost reductions improvement
    $24 millionyear-over-year
    Q2 FY26

    Our second quarter 2026 results highlight meaningful improvements to other aspects of our financial performance, including product sales and other partner-related revenue categories that increased by $20 million year-over-year, while cost reductions were the primary driver of an additional $24 million improvement.

    Combined R&D and SG&A expenses
    36%decrease
    Q2 FY26

    On the expense front, we continue to reduce our cost structure in the second quarter of 2026 with a 36% decrease to combined R&D and SG&A expenses on a non-GAAP basis.

    Core spend profile
    approximately $200 million
    2026

    Importantly, in 2026, we are already operating at an approximately $200 million core spend profile when excluding costs tied to completion of partner and APA performance obligations.

    Headcount reduction
    less than halfcompared to the first quarter of 2026
    Future

    To reach our 2028 lean and agile operating model target, we anticipate having less than half the headcount as compared to the first quarter of 2026 and are exploring an over 50% reduction to our operating footprint via consolidation of buildings and laboratories.

    Operating footprint reduction
    over 50%
    Future

    To reach our 2028 lean and agile operating model target, we anticipate having less than half the headcount as compared to the first quarter of 2026 and are exploring an over 50% reduction to our operating footprint via consolidation of buildings and laboratories.

    Noncash write-offs
    $98 million
    2025

    As a reminder, in 2025, we recorded noncash write-offs of $98 million to a separate P&L line item called impairment of assets held for sale.

    COVID vaccine market size
    $5 billion to $7 billion
    Last few years

    We continue to see the COVID marketplace as just an incredibly significant vaccine marketplace opportunity. A reminder, this is a top 5 global vaccine market. It's been in the $5 billion to $7 billion the last few years.

    Retail market share
    85% or more
    Current

    This continues to be a consumer and retail-driven marketplace in the U.S. in particular. We're looking at 85% or more of decision-making or shots coming through the retail market.

    Industry KPIs

    1
    MetricValueDetails
    Launch access metricsContracted with all major retailersN/A

    Deals & partnerships

    6
    PfizerCollaboration for Matrix-M technologyUp to $500 million in potential development and commercial milestones and significant potential future royalties

    Pfizer is one of four top 10 global pharmaceutical companies with licensing or material transfer agreements for Matrix-M.

    SanofiCollaboration for Nuvaxovid and combination vaccine developmentOver $1 billion already realized (upfront payments, milestones, royalties, cost savings); potential additional $200 million near-term milestones

    Sanofi is preparing a broader commercial effort for Nuvaxovid and is in advanced discussions with regulators regarding Phase III study timing for their combination COVID-19 influenza vaccine program utilizing Nuvaxovid. A $125 million milestone is tied to Phase III initiation, and a $75 million milestone to manufacturing tech transfer completion by mid-2027.

    TakedaCollaboration for Matrix-M platform

    Work with Takeda continues to progress well, demonstrating the broad applicability of the Matrix-M platform.

    Serum InstituteCollaboration for Matrix-M platform

    Work with Serum Institute continues to progress well, demonstrating the broad applicability of the Matrix-M platform.

    Unnamed leading global pharmaceutical companyMaterial Transfer Agreement (MTA) related to therapeutic cancer vaccine applications using Matrix-M

    Executed during the second quarter with a top player in immuno-oncology, reflecting strong momentum for Matrix-M in oncology.

    Multiple license partners and MTA holdersRights to over 30 areas of exploration across infectious disease and oncology using Novavax technology

    These collaborations reflect the broad applicability of Matrix-M and the technology platform across a diverse range of vaccine programs, with studies underway and deepening partner engagement.

    Risks & headwinds

    1
    Potential noncash fixed asset write-off2027

    Up to $35 million

    Mitigation: Related to operating footprint reduction via consolidation of buildings and laboratories.

    What to watch in Q3 FY26

    5

    Sanofi combination vaccine Phase III study initiation

    Next quarter / Future
    CurrentAdvanced discussions with regulators
    TargetStudy initiation in US or EU

    Why it matters

    Triggers a $125 million milestone payment and validates the strategic importance of the combination vaccine market.

    Initiation of this trial in either the U.S. will trigger a $125 million milestone payment to Novavax.

    Q&A highlights

    7

    Can you provide color on Sanofi's seasonal supply and the market opportunity for Nuvaxovid? Also, what needs to be aligned for the Phase III combo vaccine trial, and what is the international market opportunity?

    Management highlighted the COVID market as significant ($5B-$7B) and expressed excitement for Sanofi's commercial efforts, including direct-to-consumer advertising and retail partnerships. They confirmed Sanofi's intent to be an early mover in the combo vaccine market and their advanced discussions with regulators for Phase III timing, noting the positive momentum from recent regulatory approvals for other flu vaccines.

    “We're really happy and looking forward to seeing their impact of their commercial consumer -- direct-to-consumer program to roll it out this year.”

    asked by Nabeel Nissar · answered by James Kelly

    2 min read5 chapters

    Detailed Narrative

    01

    Strategic Transformation and Partnering Success

    Novavax is transforming into a capital-efficient biotechnology company, focusing on partnering its technology and targeted innovation. This strategy has led to collaborations with four of the top 10 global pharmaceutical companies for Matrix-M, covering over 30 areas of exploration in infectious disease and oncology. The company aims to create near- and long-term value through these partnerships, leveraging its technology to potentially impact a market projected to reach $100 billion in the 2030s.

    02

    Sanofi Partnership Deepening

    The collaboration with Sanofi is progressing well, with Sanofi confirming its intent to be an early mover in the combination vaccine market and being in advanced discussions with regulators for Phase III study timing of📎 their COVID-19 influenza combination vaccine. Sanofi is also expanding Nuvaxovid's commercial efforts in the U.S. with a broader campaign, including pharmacy activation and direct-to-consumer outreach, and launching in new international markets like the UK, Germany, and Canada. The partnership has already realized over $1 billion in value, with an additional $200 million in potential near-term milestones.

    03

    Matrix-M in Oncology Momentum

    There is growing interest and strong momentum for Matrix-M in oncology applications, with a new Material Transfer Agreement (MTA) executed with a leading global pharmaceutical company in immuno-oncology during the second quarter. Novavax believes Matrix-M's ability to stimulate robust cellular immune responses is critical for therapeutic cancer vaccines. Internal research, supported by published studies and partner-generated data, is building an increasingly compelling scientific rationale for Matrix-M's utility in oncology.

    04

    Focused R&D Pipeline Advancement

    Novavax's R&D investments are strategic, aiming to strengthen the scientific evidence for Matrix-M, broaden its utility, and create new vaccine opportunities. Significant progress is being made on a differentiated multivalent C. difficile vaccine candidate, which has the potential to cover the vast majority of circulating C. diff glades and ribotypes. GMP manufacturing has been initiated and pre-IND interactions with the FDA are underway, keeping the program on track for potential clinical entry as early as 2027.

    05

    Financial Discipline and Outlook

    The company has significantly reduced operating expenses by over 80% from its peak and is on track for an approximately 90% reduction. It has increased its full-year 2026 adjusted total revenue framework to $235 million to $275 million and improved its GAAP R&D and SG&A expense guidance to $390 million. Novavax reiterated long-term targets, including achieving non-GAAP P&L profitability as early as 2028 and reducing non-GAAP R&D and SG&A expenses to $150 million to $200 million by 2028.

    AI-generated summary of the company’s earnings call. Not investment advice.