Novavax (NVAX) missed Wall Street expectations on Monday after second-quarter results showed weaker-than-expected demand for global vaccine sales, forcing the company to cut its 2022 guidance by 50% to $2 billion .
Despite generating at least $400 million in revenue as of July 1, the company has not filled and expects to fill no orders for low- and middle-income countries (LMICs) under the global COVAX program, according to the company Year no further orders from US executives Monday.
That doesn’t include the expected booster and youth approvals, however, CEO Stanley Erck told Yahoo Finance Live on Tuesday.
“We don’t predict what we don’t have. We’re talking to the US government, we don’t have a guidance at the moment,” he said.
Erck said the company expects a future booster market, youth market and stronger sales in 2023.
“What we need to do is get a couple of booster and adolescent indications, which we’ve both applied for, and we expect to get those approvals hopefully soon — but we’re dependent on the FDA,” he said.
Novavax says its two-shot vaccine against COVID-19 has an 89.3% efficacy rate in a large Phase 3 clinical trial and is highly effective against a first-identified Variant was the United Kingdom. STAR MAX Photo: Novavax logo and COVID-19 virus images captured by Apple devices.
However, global demand remains weak.
The problem with COVAX is that it supplies LMICs, which are currently faced with an oversupply of vaccines, Erck said.
“We have postponed all sales guidance for COVAX this year. I don’t know what’s going to happen next year,” he said.
“We’re forecasting as conservatively as possible and I think we’re setting the course for next year,” added Erck.
The company had told federal officials that a BA.5 variant targeting booster would be ready by Q4, but on Monday the company said an October deadline was unlikely.
That’s not far off the competition, though. With the Biden administration calling for a September refresher campaign featuring the reformulated vaccines, both Pfizer (PFE) and Moderna (MRNA) had previously told the FDA they would not be able to manufacture the new doses until October at the earliest.
The story goes on
In a recent interview with Yahoo Finance, Moderna CEO Stéphane Bancel said the company is working hard to meet the September deadline.
Erck remains optimistic about a fourth-quarter deadline and the vaccine’s original formula as a booster dose, which provides broad coverage including protection against the BA.5 variant.
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