Maryland-based Novavax is cutting about a quarter of its revenue as the COVID-19 vaccine maker seeks to cut expenses while facing dubious long-term revenue.
The company said Tuesday that it plans to reduce study and progression costs, as well as selling, general and administrative expenses by about 40% to 50% by 2022.
The company had 1,992 full-time workers as of Feb. 21, according to Securities and Exchange Commission filings. The job cuts announced Tuesday would be for 498 workers.
Novavax’s protein-based vaccine debuted long after corporations like Pfizer, Moderna and Johnson.
That compares with more than 400 million doses of the original two-shot vaccine and the updated booster from market leader Pfizer.
The COVID-19 vaccine is Novavax’s advertising product. It is updating this vaccine for this fall and is also preparing a flu vaccine and a coronavirus flu vaccine mix.
The company said in February that it believes it has enough money to fund its operations for next year, but “there is substantial doubt about our ability to continue operations” due to uncertainty around items such as 2023 revenue.
Vaccine brands expect sales to decline this year, especially in the early part of the year, as they move from U. S. government purchases to U. S. government purchases. U. S. advertising sales of its vaccines. They expect some improvement in the fall, when other people start looking for updated booster shots.
In the first quarter, overall sales of Novavax Inc. They fell to $81 million from $704 million in last year’s quarter. The company posted a net loss of $294 million on a net revenue source of $203 million. This equated to a loss of $3. 41 consistent with sharing.
Analysts had expected a loss of $3. 46 consistent with a consistent percentage of $87. 6 million in revenue, according to FactSet.
Novavax, founded in Gaithersburg, Maryland, has been around since 1987. The company said in its SEC filing that its expenses have exceeded its earnings since then. The company’s accumulated deficit as of December 31 is $4. 3 billion.
Novavax shares were up 21% in morning trading.