Novavax at Cantor Global Healthcare Conference: Strategic Shift and Future Prospects

On Thursday, 04 September 2025, Novavax Inc. (NASDAQ:NVAX) presented at the Cantor Global Healthcare Conference 2025, detailing its strategic transformation and future growth plans. The company is transitioning from a single-product focus to a leaner model emphasizing partnerships and research development. While optimistic about future prospects, Novavax faces challenges in achieving profitability and expanding its partnerships.

Key Takeaways

• Novavax is transitioning to a partnership-driven model with a focus on out-licensing its technology.
• The Sanofi partnership is central, with significant milestone payments and royalty expectations.
• The company aims for non-GAAP profitability by 2027, contingent on Sanofi’s market performance.
• Novavax is exploring the application of its Matrix M adjuvant in oncology and other vaccine platforms.
• The vaccine market is projected to grow significantly, offering opportunities for Novavax’s combination vaccines.

Financial Results

• Milestone Payments:

- $50 million expected upon transitioning the MAH for the US and Europe to Sanofi.

- $75 million anticipated at the end of next year with the completion of tech transfer to Sanofi.

• Royalty Rates (from Sanofi):

- $200 million in royalties per $1 billion in sales of the COVID vaccine.

- $100 million in royalties per $1 billion in sales of combination flu and COVID vaccines.

• Cost Structure:

- Targeting R&D and SG&A expenses of $250 million by 2027, an 85% reduction from peak levels.

• Liabilities:

- Short-term liabilities reduced from $2.6 billion to below $400 million.

• Profitability Target:

- Aiming for non-GAAP profitability by 2027, dependent on Sanofi’s market performance.

Operational Updates

• Sanofi Partnership:

- Sanofi has assumed commercial leadership for Novaxivid in the US and select other markets.

- The MAH transition for the US and Europe to Sanofi is planned for later this fall.

- Sanofi is conducting a tech transfer to manufacture the vaccine independently by the end of next year.

• Manufacturing:

- Novavax continues operational support for Sanofi, with reimbursements for these efforts.

• Product Approval:

- Novavax received full BLA licensure for its COVID vaccine, aligned with mRNA vaccines.

Future Outlook

• Combination Vaccines:

- Strong demand for combination vaccines from both consumers and physicians.

• R&D Pipeline:

- Developing early-stage programs in RSV, pandemic flu, C. Diff, and shingles.

• Oncology Platform:

- Exploring the use of Matrix M in oncology, assessing new formulations and super particles.

• Partnerships:

- Actively pursuing additional out-licensing deals for Matrix M and new assets.

• Government Grants:

- Applying for US government grants to develop a pandemic flu protection asset.

• Market Size and Growth:

- The vaccine industry is expected to grow from $57 billion in 2024 to over $75 billion by 2030.

Q&A Highlights

• Post-Marketing Commitments:

- Routine evaluations for seasonal vaccines and studies in younger populations.

• Market Opportunity:

- The US COVID vaccine market has stabilized at 30-40 million individuals receiving the shot.

- The global market was approximately $9 billion in the recent season.

• Regulatory Pathway for Combination Vaccines:

- Phase III trials likely based on both immunogenicity and efficacy data.

• Early-Stage Programs:

- Enthusiasm for early-stage programs in RSV combination, pandemic flu, C. Diff, and shingles.

For more detailed insights, refer to the full transcript provided below.

Full transcript - Cantor Global Healthcare Conference 2025:

Pete Stavropoulos, Biotech Analyst, Cantor: Alright. We were we were at a

John Jacobs, CEO, Novavax: meeting years ago, Boris Johnson was there, he had the wool socks, and they kept sliding down. And you could see his leg when he was up on the stage, so I make sure I have a little Alright.

Pete Stavropoulos, Biotech Analyst, Cantor: I was gonna say it was my socks. Yep. But that’s alright. Is it on video, or is it just Audio. Alright.

So it doesn’t matter. Welcome to the, Cantor Global Healthcare Conference. I am, Pete Stavropoulos, a biotech analyst at Cantor. With us, we have Novavax, and I’m pleased to introduce introduce the company. So let’s start off with a brief introduction of yourselves and a brief description of the of the company.

John Jacobs, CEO, Novavax: Thank you, Pete. John Jacobs, CEO.

Lucenta Dragia, Head of R&D, Novavax: I’m Lucenta Dragia. I head r and d.

Jim Kelly, CFO, Novavax: And Jim Kelly. I’m the CFO. Thanks for having us, by the way.

Pete Stavropoulos, Biotech Analyst, Cantor: Oh, thank you for joining us.

John Jacobs, CEO, Novavax: Thanks for having us, Pete. Look. You know, we we lead Novavax. We’re an innovative biotech that has a unique technology platform. We focus on vaccine development.

Over the last two and a half years, we’ve taken the company on quite a significant journey post pandemic where we’ve converted it together as a leadership leadership team to an organization that’s focused on on driving our technology forward to create value. So we were a company that had one product which emerged from the tech platform to help take on a global pandemic. The company had built a vertical integrated structure that that came with high expense and and great opportunity. Through the pandemic, they generated a successful vaccine, but now we’ve converted the company by shrinking down that expense base, really cleaning up the balance sheet and the p and l, strengthening our cash runway while maintaining our capabilities, and focusing on multiple opportunities for value creation through the out licensure of our technology, through partnering. A strong example is the Sanofi deal, and then also through a new r and d pipeline that Rexandra is helping to lead development on four new assets, each of which could compete in multibillion dollar marketplaces assuming success.

And we’re also exploring beyond vaccination of respiratory diseases and bacterial diseases. We’re taking a look at oncology, and we think there’s we’re optimistic about what we’re seeing early coming out of the lab in our oncology experiments with Matrix M. So a bright future ahead for Novavax involving potentially multiple partnerships, the further expansion of our Sanofi deal and the success there, and a new and growing pipeline that’s early stage but encouraging right now.

Pete Stavropoulos, Biotech Analyst, Cantor: Okay. And so, congratulations on the full approval of, the COVID vaccine in 65 years and older plus population. I know there was a little bit of a delay, one to two months. But could you just remind us what the data supported that approval? What the data was that supported that approval?

And how strong is it from an efficacy, but more importantly from a safety perspective? Rox, you want to take that?

Lucenta Dragia, Head of R&D, Novavax: That’s an excellent question. Thank you for asking. So the clinical trial that actually supported our BLA approval was in almost 30,000 individuals, but this is on the top of already existing data. We have more than 50,000 individuals that have been enrolled in different clinical trials, and the safety database, in the general population vaccination of about 5,000,000 individuals. I would like to remind everyone that our vaccine, it’s an innovative technology.

We do have a protein based antigen, but then we have the adjuvant, Matrix M. We have evaluated Matrix M in the context of these clinical trials, but also with different other platforms. And the data as far as the safety, the reactogenicity, has been proven very favorable compared to other vaccine platforms. All that body of evidence have been extensively published. We have lots of papers out there.

We have done also not only clinical trial evidence analysis. So, again, the data that is supporting, our vaccine is really comprehensive.

Jim Kelly, CFO, Novavax: And in your question, you noted the, label for over 64. Our label is 65 plus plus in addition to that 18 to 64 with at least one risk factor. Yeah.

Pete Stavropoulos, Biotech Analyst, Cantor: Yeah. But that’s that’s broadly across all COVID vaccines. So just yeah.

Jim Kelly, CFO, Novavax: That’s right.

Pete Stavropoulos, Biotech Analyst, Cantor: It’s not these specific for you.

John Jacobs, CEO, Novavax: That and and we believe that represents the majority of people who’ve chosen to get a vaccine in the last two seasons. Yes. Right? The cohorts of people who choose to sign up tend to be those that are either older or have risk factors and are concerned about that and want a vaccination.

Jim Kelly, CFO, Novavax: That’s exactly right.

Pete Stavropoulos, Biotech Analyst, Cantor: So part of the approval includes a post marketing commitment. You know, what exactly was the request and, where do you stand on this?

Lucenta Dragia, Head of R&D, Novavax: So, with the approval of the BLA came one post marketing commitment that has also evolved in the last few months. A couple of other post marketing commitments have been added, but it was not surprising. So post marketing commitments are something that occur for all vaccines that are approved, be it, for instance, the one that have been added just very recently, which is really an evaluation of the seasonal vaccine. Yeah? This is something that occurs actually in a couple of hundreds of people every year to prove that your vaccine, it’s an immuno bridging type of study.

The original one was linked to a younger population, the fifty to sixty four. And, again, these are not elements that are surprising. That type of post marketing commitments are are really routine for for vaccine manufacturers.

Pete Stavropoulos, Biotech Analyst, Cantor: Okay. So, you know, Sanofi will be taking over, responsibilities, on Nivaxavid. Where where are you today, within that process of, handing it off? Jim, you want to take that?

Jim Kelly, CFO, Novavax: Hey. Sure. So Sanofi has taken the commercial leadership role for Novaxibid, and this is in The US, select other ex US markets. So we’re thrilled. I mean, you’re you’re talking about the leader in vaccines globally, so we couldn’t be happier about who we’re partnering with.

So they’re well positioned to drive commercialization beginning this fall forward. A couple important steps are gonna happen, related to this transition later this fall. We’re gonna be, transitioning the MAH for both US and Europe to Sanofi. And you might remember that’s going to trigger 50,000,000 in milestone payments to us. However, in addition to that, we’re continuing to prepare Sanofi to do manufacturing on their own.

There’s a tech transfer that’s occurring this year into the end of next year, where we’ll teach Sanofi how to manufacture on their own. At the end of which, another 75,000,000 milestone that we’re anticipating, at the end of next year. In the background, however, we continue to support operationally Sanofi, and we’re reimbursed for our efforts. The post marketing commitment study that you just heard Roxandra describe, excellent. Where that’s going to occur, it’s ordinary course to the extent we have an operating role.

Sanofi is reimbursing us, and I mapped that all out in our most recent guidance.

Pete Stavropoulos, Biotech Analyst, Cantor: And then when it comes to future strain selection and so forth, whose responsibility is that? Is it joint? Is it

Lucenta Dragia, Head of R&D, Novavax: So, of course, Sanofi is going to take over, that decision is going to belong to Sanofi more and more for a cease transition year. We have worked together for this strain selection. Obviously, we are watching very closely the evolution of the variants and of the strains that are emerging, and it’s a continuous process. As is the case for flu or for COVID, these strains are are actually evolving, as we speak, actually, and we are obviously on top of that.

John Jacobs, CEO, Novavax: No. It’s a good partnership. We communicate routinely. It’s smooth operation. We support each other, and the handoffs occurring smoothly.

Jim Kelly, CFO, Novavax: And perhaps one of the most important things we’ve heard from Sanofi recently is as they think about their vaccine business between now and 2030, they see it growing. They see it growing from around 8,000,000,000 now to up to 10,000,000,000. We’re a major contributor to that. So we couldn’t be happier to support them along that path. And that growth comes with both launching Arden, Nevaxavid in their hands, but importantly, driving to to launch one, possibly two combination vaccines of our COVID with their market leading flu.

So as you as you see, we, you know, we’re thrilled to have them as a partner. They’re openly describing how they’re driving growth, including a major driver from our partnership, and so more to come.

John Jacobs, CEO, Novavax: And, Jim, we, you know, we we want the audience to remember as well that Sanofi has access to our Matrix M adjuvant team, as you know. So they can develop as many new vaccines as they would like to using that adjuvant in their

Pete Stavropoulos, Biotech Analyst, Cantor: And without speaking for them, they just made a significant investment in another technology platform that we see as very synergistic with our deal

John Jacobs, CEO, Novavax: and and shows their commitment to the vaccine space for decades to come. So if they choose to develop develop new as vaccines using that our Matrix M, we’re eligible for couple of 100,000,000 in one time milestones per new vaccine and mid single digit royalties for two decades after each of those might launch. So there are layers to opportunity just in the Sanofi deal itself. Near term milestones that Jim highlighted, the potential of one, maybe two combination launches including our Nuvaxavid royalties from Nuvaxavid sales this season and go forward, plus the potential of new vaccines developed using that adjuvant. That’s pillar one of our three pillar strategy for Novavax growth accretion.

Second is new deals. So in closing that Sanofi deal, we made sure to maintain freedom to operate regarding outlicensure at Matrix M. We gave nothing exclusively to our excellent partner in Sanofi. There’s a lot of value creation opportunity there, but we maintain the freedom to outlicense our tech to anyone else we want to to develop additional additional vaccines. And we did note that we have two additional top 10 pharmas beyond Sanofi who signed MTAs with our company, material transfer agreements, where they’re exploring the utility of Matrix M in their own laboratories and their own portfolios.

Should they succeed, that could potentially turn into potential deals. Scope and scale yet to be determined, and when we can talk about those, we will if they materialize. But that’s pillar number two is generate more deals using our tech. And pillar three is what Roxandra’s leading, the expansion of our r and d portfolio for assets and development that are early clinical phase. In addition to that, an area number five is oncology platform.

And we’re really assessing using AI and other approaches, the utility of Matrix n in oncology as a platform, and we’re exploring new formulations and super particles of Matrix n, expanding the IP of Matrix M in doing so for its utility in oncology as well. So we’re very excited in the coming quarters to begin to unveil some of that early data in pillar number three of our growth strategy, which is pipeline r and d. And our intention there, last point on that, is to create partnerships and out licensures from those assets and platforms that we’re working on. So not only can we out license and partner with Matrix M, but also in the new assets we create from our nanoparticle and Matrix M technology platform to generate opportunity for additional partnerships there as well.

Pete Stavropoulos, Biotech Analyst, Cantor: So Sanofi, just to be clear, they have access to access to Matrix M? Correct. And is it sort of free rein? You know, they can go into any direction they want to or they restrict it or, you know, are there a certain number of, of exploratory studies that they can actually do?

John Jacobs, CEO, Novavax: It’s free rein. They can explore it. After a certain number of potential vaccines they may put into development, there are some access fees to the technology, but they still have access to it. So it’s really unlimited in that way.

Jim Kelly, CFO, Novavax: Importantly, it’s on a nonexclusive basis. Correct. And, you know, what we recognize is that the vaccine industry is growing. Right? It’s 57,000,000,000 this year.

It’s growing to over 75,000,000,000 by 2030. It’s a recent McKinsey study, and we wanna be the technology behind it. So when we provide access, for example, to our matrix, we’re doing so on a nonexclusive basis because we see the utility of our technology from multiple players driving the vaccine industry growth. And the Sanofi agreement and partnership, just the first example. You know, can you touch on, you know, Sanofi’s expertise and capabilities that could be leveraged to help distribute nuvaxavir into the market?

Well, certainly. And maybe I’ll point to where they are with the enhanced flu vaccine business. We’re looking at with their high dose Fluzone, even with their flu block in older adults, they have two thirds market share position in The US. And this is a function not only of the strength of the products, but also their portfolio. I think you know how important contracting is.

Mhmm. But in addition to that, they have an exceptional proprietary distribution. A distribution that they use not only for themselves, but frankly other pharma companies leverage it. It’s firewalled off in a manner. We couldn’t have a better partner.

So we believe we’re our vaccine, the Vaxivid, and future vaccines in great hands. What they have said about this coming season, because of course we can’t speak for them, is that it’s a learning year for them and I should probably clarify that. We got a lot of questions about that. In order to be prepared for any given season, the contracting occurs, gosh, it begins in the prior fourth quarter through about April. For our vaccine, as we’re transitioning to Sanofi this year, well, we didn’t have our BLA yet during that contracting window.

And you might have seen in our most recent authorization, hey, we got that six month dating on our on our product. That was critical. So Sanofi’s coming into this year saying, great. This is a learning year for us. We’ll just get all those things lined up.

We’ll get ready. 2026 is their year where they’ve got the time, they got the product profile, and so we’re really looking forward to not just what they’re doing this year, but when they’ve got the full strength of their capabilities to put towards the ’26 and beyond.

John Jacobs, CEO, Novavax: Yeah. The conversations getting ready for ’26 begin in the next few weeks even to prepare for the next season and now under licensure with the full product profile in hand and approved. And this was the first time, by the way, a couple of firsts for Novavax. We got our BLA licensure, so no longer under emergency use authorization. And it’s the first time with our COVID vaccine, we were approved at the same time as mRNAs by the regulatory authorities heading into this season.

So, again, learning year for Sanofi, baton handoff here. We just got all those pieces in place now, but next year will be their full showcase on what they’re capable of from the very beginning of the start to the finish on a season. Season.

Pete Stavropoulos, Biotech Analyst, Cantor: So, you know, even five plus years after the, the onset of COVID, you know, what do you see as the, the market opportunity for, these vaccines both in The US and, the rest of the world? And I’m not talking specific to yours, but overall broadly. Yeah. Overall, I mean, I

John Jacobs, CEO, Novavax: think you saw The US stabilize the last couple of seasons around that high thirties to low 40 regarding millions of people getting the shot. That’s right. And that stabilized. The global market was roughly $9,000,000,000 or so, Jim, in value. That’s exactly right.

Recent season. But what we’re really excited about is combination therapy, Pete, where we see and if you look at some of Sanofi’s comments in the public domain and others, Moderna, etcetera, about combination therapy, and we see strong consumer preference and physician preference in our own research for having combination options and frankly, non mRNA options as well. We offer a protein based non mRNA option and the only one on the COVID side. As Jim mentioned before, Sanofi is the global leader in flu. They know how to do it.

They’re world leaders in vaccine technology and development. We’re so excited to be able to ride on that journey with them in combination with that world leading flu vaccine. In fact, my mother-in-law gets their vaccine every year. She’s 82 years old, right, that high dose from Sanofi, and she feels protected, and she is protected by it. We get to ride with them in combination vaccines potentially out into the future.

And as so many consumers go every year to get that flu shot, up to fifty percent of folks who got a COVID shot or so got a flu shot according to The US database. When you you lift COVID by by attaching it to flu, you get that option to have it all in one shot studied as a combination specifically specifically for that purpose. So Sanofi’s projecting significant growth in the COVID marketplace based on that, and we couldn’t have, as Jim said, a better partner with a world leading flu vaccine to put our differentiated protein based COVID vaccine together with for that future. And we think that bodes well for growth in the COVID market in years to come. Very hard to put a crystal ball on that and give you numbers and percentages today with everything going on, but we’re excited about the potential of combination, what that may do in the future.

Lucenta Dragia, Head of R&D, Novavax: And in 2030, the 2030, 75,000,000,000 vaccine market is partially built off to that. We need to remember that 2030 is not very far away. We are almost in 2026, so it’s going to take only about four years or five years to get from where we are today to that

John Jacobs, CEO, Novavax: very Potential growth of the global market

Jim Kelly, CFO, Novavax: for vaccines.

Lucenta Dragia, Head of R&D, Novavax: The global market. So and we do believe very strongly that this combination vaccines and the fact that some of these vaccines are getting approved are going to be part of that solution.

John Jacobs, CEO, Novavax: Thank you, Roxanne. Jim, you had something to add.

Jim Kelly, CFO, Novavax: So one thing I think that we might be able to share because it’s it’s out there in the public domain, just sort of the dimensions of our royalty rates. And so I just wanna give you an order of magnitude. What does it mean cash flow wise, both the COVID market and the combination market to us as Sanofi executes. Alright. So we know the the COVID market, last year was approximately 9,000,000,000.

US market was likely 3 and a half, 4,000,000,000 of that. Alright. For each billion dollars of sales by Sanofi of our COVID vaccine, we’re able to, receive royalties, approximately 200,000,000. Alright. So you just gotta ask yourselves where are they gonna play in terms of order of magnitude.

When you look at the combination marketplace, great update from this firm called AirGenesis at the World Vaccine Congress in DC in April. K? They estimate that the combination flu and COVID market, point estimate, about 8,000,000,000. Alright? So for each billion that Sanofi sells of their combination of their flu and our COVID, we’re eligible for about a 100,000,000 in royalties.

So we’re talking about the flu enhanced flu leader who has two thirds market share. And I’m not saying that’s gonna be their kick market share, but you’re getting order of magnitude counted in the hundreds of millions of dollars of opportunity of cash flow coming to our

John Jacobs, CEO, Novavax: one combination, Jim.

Jim Kelly, CFO, Novavax: And that’s just for one combination. And it is for this reason that when we talk about our lean and agile operating model, I think John describes it as a unicorn where you get pharma light performance on the top line, rucks driving innovation in our pipeline, but we’re driving towards non GAAP profitability as quickly as possible. You’re seeing the orders of magnitude. We’re saying it could be as early as 2027, but gated by, of course, market performance by by Sanofi, including launch timing for their combination products.

John Jacobs, CEO, Novavax: And imagine a world in a market of combination flu COVID vaccines where you have a Moderna out there unsuccessful in this scenario, where Sanofi has potentially two combination vaccines, each of which have our Nivaxivid and are eligible for royalties. Mhmm. And then you have ours potentially outlicense to a third party, which we’re in discussions for and hope to achieve. That’s right. So should we achieve that?

In that scenario, you’d have four combination flu COVID vaccines, two by the world leader in flu with our new vaccine in it, one with our flu and Nuvaxivat by a third party who would have the scale scope and desire to do that, and one by Moderna. So every time I add that up in my simple view, that’s three out of four shots on goal for us to get a check when someone gets one Right?

Pete Stavropoulos, Biotech Analyst, Cantor: Yeah. So and there there is CDC data that sort of suggests that fifty percent of the people who didn’t receive the COVID vaccine also had the other flu in the same visit. Mhmm. And so do you expect that to sort of increase since they are actually two separate shots?

Lucenta Dragia, Head of R&D, Novavax: So, again, if you’re looking at the combination vaccines, both the general public and the the health care professionals do prefer them. So more than sixty percent of the general public and more than eighty percent of health care professionals actually prefer combination vaccines. And as John has mentioned before, the advantage of actually designing from the very beginning combination vaccines is that we are undertaking clinical trials, very rigorous clinical trials with that combination in one shot. So it’s past the point where we are getting in one arm, you know, vaccine, in the other arm, the other, which is more ad hoc combination, if We you are actually now very rigorously undertaking those clinical trials that can build, that set of data that would enable that choice from both the public and the health care professionals.

John Jacobs, CEO, Novavax: And our Matrix M adjuvant can be helpful in facilitating combination vaccine development because it allows for a greater immune response with less antigen. Yes. And as you know, Pete, with your background and education, as you as you layer on more antigen, you potentially get more side effects. It becomes more expensive also to manufacture for a company, more difficult to execute those trials. So by lowering the required antigen count, boosting immunity, Matrix M can hopefully help to facilitate multiple combination vaccines across different vaccine platforms, not just in flu and COVID, which makes it exciting for partnering and which further facilitates that second pillar of our growth strategy, which is additional partnerships.

Data. We we called her Rux, by the way. It’s Roxandra on the day. Rux and her team have generated data showing that Matrix M could have utility across multiple vaccine platforms, polysaccharide protein, mRNA attenuated, etcetera. Doesn’t mean it’ll work every time someone works with it.

Of course, nothing will. Yes. But it has the potential to have utility across all those platforms, making it even a better asset to potentially partner with.

Pete Stavropoulos, Biotech Analyst, Cantor: Alright. So from a regulatory standpoint, you know, what would it kick what would you what would a Phase III sort of look for a kick? Would it be based on immunogenicity or efficacy or both?

Lucenta Dragia, Head of R&D, Novavax: Most probably both. Again, we are what we have done with our combination the end of last year, we have enrolled actually a first cohort, about 2,000 individuals, to really build both the safety database for this type of combination and actually generate more of the immunogenicity data that could help us in the design exactly as you were mentioning of a potential clinical trial that we would undertake together with potential partner. So one needs to generate both immunogenicity data, and, obviously, the proof is in the pudding. Yeah? You really need to show that your vaccine is safe and efficacious.

John Jacobs, CEO, Novavax: But but, again, the the key for us well said, Roxandra. Thank you. The key for us yeah. I called you Roxandra that time. You see?

The the the key for us is that this will be in the hands of a partner. Yes. That’s our intention. Right, Pete? So whatever that takes, it should be in the hands of a partner that has substantial resources and the know how combined with our capabilities that we’re maintaining.

As we drive down our cost and infrastructure while maintaining our capabilities, We leverage our technology to drive value in the hands of others who have the capital and the resources to drive that effectively. And, we can help. We have the expertise and the know how on this vaccine and this tech on how to get things into development, how to take it through development, strain selection, other things. We maintain capabilities, but with a much more lean infrastructure and a more stabilized cash runway.

Pete Stavropoulos, Biotech Analyst, Cantor: Okay. What are the next steps for the in house kick? And,

John Jacobs, CEO, Novavax: are you The next steps are find a partner.

Pete Stavropoulos, Biotech Analyst, Cantor: Alright. How do

John Jacobs, CEO, Novavax: you And as we’ve said publicly, we’re in active discussions on that. And when we get one, if we get one, we’ll let you know. Alright. That’s about all we can say there.

Pete Stavropoulos, Biotech Analyst, Cantor: So we have about three, four minutes left. What are the key sort of in house early stage programs that you’re most excited about?

Lucenta Dragia, Head of R&D, Novavax: I cannot say which child I prefer, so can actually talk a little bit about the programs. Building on the respiratory pathogen expertise, we do actually have an early RSV combination. We’ve talked about combinations, so I’m not going to dwell on to why we have chosen that. And an early program in pandemic flu. By the way, for the pandemic flu, we just published some of the preclinical data, both in rodents and nonhuman primates, intravascular and intranasal in nature communication, so that’s a very good reference.

And then we do have an early program in C. Diff where obviously the unmet medical need is very significant and we have seen quite a number of failures as of lately, but we think that based on those You

John Jacobs, CEO, Novavax: mean other companies targeting

Lucenta Dragia, Head of R&D, Novavax: companies. Thank you, John, for making clear. It is about other companies using a lot of the AI machine learning modeling work, we we think that we are going to have a product that is well differentiated and hopefully much more successful. And then we are working on shingles vaccine. They’re obviously on the market, very big market, a very efficacious vaccine.

Unfortunately, it is linked to a significant reactogenicity, and maybe about forty percent of individuals who are getting the first dose of that particular vaccine are not coming to get their second dose, which is obligatory in in that particular particular regimen. So we hope to have a vaccine that is similar in efficacy but with a much milder reactogenicity based on the work that we have done with Matrix M.

John Jacobs, CEO, Novavax: Yeah. So we’re targeting multibillion dollar market opportunities here, Pete, the top three to five areas in vaccine potential that feed into the market that Jim and Roxanda were describing earlier on that potential growth. That’s what we’re targeting with our technology. So you look at shingles, excellent vaccine out there now regarding efficacy. It does have a high reactogenicity profile.

So if we can one can improve on that, you might have a very competitive asset. So should we succeed there, that could be a really strongly competitive entry into that marketplace that we would intend to partner out Yeah. And monetize as early as possible with some early results coming out of the laboratory. Secondly, c diff. There’s no vaccine out there right now.

I know Pfizer’s developing one that they’re excited about. Companies are trying because, unfortunately, my my sister in law’s best friend died from c diff after a routine surgery at 59 years old. It woke me up to it, several months ago and how serious that really is, and there’s nothing out there right now that’s really effective. So we would hope if we can generate vaccine that can be preventative on that or or help someone after a surgery with that Absolutely. Huge public health benefit, multibillion dollar opportunity, we’re targeting that.

And you look at RSV, a billion dollar plus marketplace right now. And as we’ve said earlier, combination is the way of the future. As Roc said, there’s a high preference share in market research interviews and studies with both consumers and physicians for more convenience in the vaccine. Finding the right combinations that make sense is an art, and we’re working on that. And also we have our beautiful matrix and adjuvant, not perfect, but very nice asset.

Certainly helpful in development for combination vaccines, we believe, as we’ve said before, and excited about looking at multiple opportunities, doubles and triples on RSV and what might make sense. And then h five n one, pandemic flu. We’re applying for grants. The US government is still open for business there and does have money to deploy, so we’re in active discussions with them about potential grant opportunities to develop an asset to protect The US population. Also in discussions with the European authorities, they’re very interested in our technology platform frankly for many reasons.

So very exciting there. Last but not least, oncology, And that’s a that’s a platform play we’re looking at. We’re targeting platform approaches that could be more than half of tumors that lead to death. So if we’re able to show some positive results there, we could have multiple opportunities and open up the doorway for the creation of potentially multiple cancer vaccines in the future with a non mRNA option. Now a lot of the mRNA companies, and thankfully, and we hope they succeed as well because cancer is devastating, are working on excellent vaccines we hope that come out and help public health.

We’d like to be able to do that as well with a non mRNA option. So that’s the goal. We’re excited about the future at Novavax. We thank you for your time today.

Pete Stavropoulos, Biotech Analyst, Cantor: Yeah. For one minute. So it’s great, a lot of opportunity internally. You can also basically utilize licensing deals with Matrix M, leveraging it has a very large safety database. So I’m excited about that.

But before we do leave, Jim, you’ve made big strides in cost cutting and debt management. How close are you to having the structure in place to actually have a sustainable and cash flow positivity?

Jim Kelly, CFO, Novavax: Well, certainly. We’ve highlighted here today, got a great technology platform to invest around, and we also have exceptional partner in Sanofi, but more to come to bring cash flows into the company. We’ve shared with investors that, you know, we’re looking and driving to non GAAP profitability as early as 2027, and we’re doing so by both supporting our partner, Sanofi, in what they do, and you heard the orders of magnitude of potential cash flow in both milestone and royalties, then we are driving down our cost structure. And a couple important points on that. You know, we’re targeting non combined r and d and s g and a by 2027 of 250,000,000.

That would reflect an 85% reduction from our peak. We have done an exceptional job driving down our cost structure. Then in addition to that, our liabilities, our short term liabilities, our peak, 2,600,000,000.0. Last quarter, below 400,000,000. So you’re watching us just literally shed cost structure, shed liabilities.

And with our most recent announcement, I think you know we refinanced our convert, took a 175,000,000 that was sitting there in 2027, took one fifty of it and pushed it out to 2031. We’ve got a lean agile operating model, great investments, but we’re doing it in an agile way. And through some of our, you know, important non dilutive cash raises through milestones plus some of this refinancing, extending our runway along the path to that profitability. So that’s what we’re doing, but it’s all about creating value, creating lifesaving vaccines.

Pete Stavropoulos, Biotech Analyst, Cantor: All right. Well, thank you very much for attending the Cantor Healthcare Conference and enjoyed the conversation and looking forward to

John Jacobs, CEO, Novavax: Thank your you. Thank you. You very much. Thank you.

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