Novavax (NVAX) lowered its 2022 outlook due to falling demand for Covid vaccines, causing NVAX stock to plummet on Tuesday.
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The decision followed a major disappointment in the second quarter, which saw sales come in at less than a fifth of analysts’ forecasts. Additionally, Novavax reported an unexpected loss that widened from the second quarter last year. Wall Street had expected Novavax to post gains for the second straight quarter.
In early trading in today’s stock market, NVAX shares are down 27.1% near 41.80.
“Novavax has adjusted its 2022 guidance to reflect several evolving market dynamics,” the company said in a written statement. “We remain confident that our vaccine represents a strong additional choice. Our vaccine’s competitive product profile encompasses the (efficacy), well-tolerated safety profile, durability of protection, and ability to target both current and future strain variants.”
NVAX stock: differentiation from Pfizer, Moderna
Novavax relies on its protein technology to differentiate itself Pfizer‘s (PFE) and modern‘s (MRNA) messenger RNA-based Covid recordings. Novavax’s vaccine is available for adults in 43 countries including the United States. There is also a booster vaccination in three countries.
But investors hammered NVAX stock after the second-quarter report. Revenue collapsed nearly 38% to $185.9 million, missing guidance for $1.02 billion. Novavax also lost $6.53 a share. Analysts had expected earnings per share of $5.54. Losses also widened from $4.75 in the year-ago period.
According to the company, it is making “enormous progress” in the third quarter and has already shipped more than 23 million cans since the beginning of July. It is important to note that in the US the vaccine is only available to adults who have not received the Covid vaccination. That’s about 10% of adults.
“Although delivery may be pushed back to 2023 in some cases, we do not expect aggregate contracted demand to change under most of our pre-sale contracts,” Novavax said.
Still, the company halved its 2022 guidance and now expects revenue to be between $2 billion and $2.3 billion. That pales in comparison to NVAX equity analysts’ call for $4.27 billion. Still, midway through Novavax’s guidance, sales would nearly double.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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