Novavax Q1 2025 slides: Revenue surges to $667M, company raises full-year guidance

Introduction & Market Context

Novavax Inc. (NASDAQ:NVAX) presented its first quarter 2025 financial results on May 8, 2025, revealing a dramatic financial turnaround that sent shares soaring in premarket trading. The vaccine developer reported total revenue of $667 million, a substantial increase from the $94 million recorded in the same period last year.

The company’s stock jumped 28.73% in premarket trading to $7.66, reflecting investor enthusiasm for the significantly improved financial performance and raised full-year guidance. This positive reaction follows a challenging period for Novavax, which had reported disappointing Q4 2024 results with revenue of just $88.3 million.

Quarterly Performance Highlights

Novavax reported a remarkable transformation in its financial position for Q1 2025, posting net income of $519 million compared to a net loss of $148 million in Q1 2024. This translated to earnings per share of $3.22 (basic) and $2.93 (diluted), a substantial improvement from the -$1.05 per share reported in the same quarter last year.

The company’s total revenue of $667 million consisted of $622 million in product sales and $45 million in licensing, royalties, and other revenue. Notably, the Nuvaxovid sales of $608 million included $603 million related to the termination of two Advanced Purchase Agreements (APAs) and recognition of cash received in prior years.

As shown in the following detailed financial breakdown:

Detailed Financial Analysis

Novavax has made significant progress in strengthening its balance sheet, reducing current liabilities by $732 million (63%) compared to year-end 2024. The company ended the quarter with combined cash and accounts receivable of $792 million, including $747 million in cash and $45 million in accounts receivable.

The company has maintained its focus on cost discipline, reducing combined R&D and SG&A expenses by 24% compared to Q1 2024. For full-year 2025, Novavax reiterated its guidance targeting combined R&D and SG&A expenses of $475-$525 million, representing approximately a 30% reduction at the midpoint compared to full-year 2024.

The following chart illustrates the company’s significant reduction in current liabilities over time:

Novavax has implemented a multi-year cost reduction strategy, with plans to further decrease operating expenses in the coming years. The company is targeting approximately 70% of spending in R&D for 2025, with the majority related to completing their COVID-influenza combination (CIC) program and supporting Sanofi-related activities.

As shown in the following expense reduction roadmap:

Strategic Initiatives

Novavax outlined three strategic priorities for 2025, with the Sanofi (NASDAQ:SNY) partnership taking center stage. The company expects to receive up to $225 million in milestone payments from Sanofi in 2025, including $175 million upon US FDA BLA approval, $25 million for US MAH transfer, and $25 million for EU MAH transfer.

Additionally, Novavax amended its agreement with Takeda in April 2025, which will provide approximately $20 million in upfront payment in Q2 2025, with eligibility for annual milestones, tiered royalties, and Matrix-M reimbursement.

The company’s comprehensive financial results and strategic initiatives are summarized in the following slide:

R&D Pipeline and Competitive Positioning

Novavax highlighted the competitive advantages of its protein-based vaccine platform with Matrix-M adjuvant, particularly regarding tolerability compared to mRNA vaccines. According to the company’s presentation, Nuvaxovid recipients experienced approximately 39% fewer symptoms on average than those receiving mRNA vaccines.

The following comparison illustrates this tolerability advantage:

The company’s Matrix-M adjuvant has demonstrated a favorable reactogenicity profile based on studies with over 50,000 patients across various demographics and age groups. This technology platform forms the foundation of Novavax’s diversified R&D pipeline, which includes multiple vaccine candidates at various stages of development.

Novavax’s pipeline includes its COVID-19 vaccine (now in authorized use through Sanofi), a COVID-influenza combination vaccine in Phase 3, an influenza vaccine for older adults in Phase 2, and several earlier-stage candidates targeting RSV combinations, H5N1 avian pandemic influenza, shingles, and C. difficile.

The company’s diversified pipeline is illustrated below:

Forward-Looking Statements

In a significant development, Novavax substantially raised its full-year 2025 revenue guidance. The company now projects adjusted total revenue of $975 million to $1.025 billion, up from the previous guidance of $300-$350 million provided in February 2025.

This revised guidance includes $610 million in Nuvaxovid product sales, $20-$35 million in adjusted supply sales, and $345-$380 million in adjusted licensing, royalties, and other revenue.

The updated revenue framework is detailed in the following slide:

Looking ahead, Novavax is focused on leveraging its technology platform and early-stage pipeline to forge additional partnerships while continuing to advance its existing programs. The company’s cost reduction initiatives are expected to continue, with combined R&D and SG&A expenses projected to decrease to approximately $350 million in 2026 and $250 million in 2027.

With its improved financial position, strategic partnerships, and diversified pipeline, Novavax appears to be executing a successful transformation that has dramatically improved its financial outlook compared to recent quarters.

Full presentation:

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