Company delays profitability target to 2028
Projects 2026 prelim revenue
COVID-19 shot prescriptions down about 20% this season
Adds details in paragraphs 2 and 3
By Mariam Sunny and Siddhi Mahatole
Nov 6 (Reuters) - Novavax NVAX.O on Thursday provided preliminary adjusted revenue for 2026 and pushed back its profitability target by a year to 2028 as the biotech awaits key product launches from its partnership with Sanofi SASY.PA.
The company is banking on the rollout of a COVID-19-influenza combination vaccine, which includes its shot, Nuvaxovid, by the French drugmaker.
Novavax, which had licensed the rights for Nuvaxovid last year for up to $1.2 billion, expects royalties from the shot to increase significantly in the 2026 season, as Sanofi leads marketing efforts in the U.S. and European Union.
The company expects 2026 adjusted revenue between $185 million and $205 million, excluding royalties and sales from its licensing deal with Sanofi.
Novavax is facing investor pressure over sluggish Nuvaxovid sales.
Hedge fund Shah Capital, its second-largest shareholder, last month called on the board to consider a sale of the company.
"Shah Capital, being an 8% shareholder, continues to be very disappointed with only 1% vaccine share this season and continued expected operating losses," Founder Himanshu Shah told Reuters.
COVID vaccine prescriptions declined about 20% during the current immunization season, Novavax said, following new U.S. recommendations that have created confusion and barriers for Americans seeking the shots.
"When we think about the COVID market this year and its go-forward expectations, there's just a bit of a resetting occurring in the U.S.," CFO Jim Kelly said on a post-earnings conference call.
The company expects 2025 adjusted revenue to be between $1.04 billion and $1.06 billion, up from $1 billion to $1.05 billion earlier. This excludes Sanofi sales and royalties.
Its third-quarter net loss widened to $202 million from $121 million a year earlier, due to non-cash charges of $126 million.
(Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Leroy Leo and Sriraj Kalluvila)
((siddhi.mahatole@thomsonreuters.com;))