Corrects paragraph 2 and third bullet to say prescriptions in the COVID vaccine market dropped 20%, not just for Novavax's shot
Company delays profitability target to 2028
COVID vaccine maker projects 2026 revenue below Wall Street estimates
Prescriptions for COVID-19 shots fell about 20% this season
By Mariam Sunny and Siddhi Mahatole
Nov 6 (Reuters) - Novavax NVAX.O on Thursday deferred its target to become profitable by a year to 2028 as changes in U.S. vaccination policy have dampened the company's COVID-19 vaccine sales.
Shares of the company fell 1% after it projected preliminary adjusted revenue for 2026 below Wall Street estimates.
The company said prescriptions for COVID shots declined about 20% during the current immunization season 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.
Novavax expects 2026 adjusted revenue between $185 million and $205 million, excluding royalties and sales from its licensing deal with Sanofi SASY.PA. Analysts had expected about $450.4 million, according to LSEG data.
The dour outlook comes as Novavax focuses on partnerships to cut costs and drive growth, amid ongoing investor pressure over sluggish sales of its COVID vaccine, Nuvaxovid.
Its second-largest shareholder, hedge fund Shah Capital, had 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," Himanshu Shah, founder of the fund, told Reuters.
"Novavax shareholders will be better served under the umbrella of a larger pharma company."
The company expects its 2025 adjusted revenue to be between $1.04 billion and $1.06 billion, compared with a range of $1 billion to $1.05 billion earlier. This excludes Sanofi sales and royalties.
Third quarter revenue came in at $70 million, topping estimates of $42.13 million.
Net loss for the quarter ended September 30 widened to $202 million from $121 million a year earlier, as the company recorded non-cash charges of $126 million.
(Reporting by Siddhi Mahatole and Mariam Sunny in Bengaluru; Editing by Leroy Leo)
((siddhi.mahatole@thomsonreuters.com;))