On Wednesday, June 11, 2025, Novavax Inc. (NASDAQ:NVAX) presented at the Goldman Sachs 46th Annual Global Healthcare Conference, outlining a strategic pivot towards research and development and diversified partnerships. CEO John Jacobs highlighted both opportunities and challenges as the company transitions from a commercial model to one focused on its recombinant protein-based nanoparticle technology and Matrix M adjuvant platform.
Key Takeaways
- Novavax aims to achieve non-GAAP profitability by 2027 through cost reductions and strategic partnerships.
- The company plans to cut its workforce by 80% by 2027, significantly lowering expenses.
- A $175 million milestone was achieved following BLA authorization, signaling financial progress.
- Sanofi’s minority equity investment and licensing agreements mark a key strategic partnership.
- An Investor Day is planned for late 2025 to provide updates on pipeline advancements.
Financial Results
- Liabilities Reduction: Novavax has removed over $2 billion in liabilities since John Jacobs became CEO in 2023.
- Expense Reduction: More than $1 billion in annual SG&A and R&D expenses have been eliminated.
- Headcount Reduction: The company is planning an 80% reduction in headcount by 2027.
- 2025 Revenue Framework: Revenue growth is expected from milestones and royalties.
- R&D and SG&A Spend: Core spending is targeted to be $250 million or below in 2025.
- BLA Approval Milestone: Received a $175 million payment in May following BLA authorization.
- Profitability Target: Non-GAAP P&L profitability is aimed for as early as 2027.
- Sanofi Equity Investment: Sanofi has made a minority (less than 5%) equity investment in Novavax.
Operational Updates
Sanofi Partnership: Includes co-commercialization of Novavax’s COVID-19 vaccine and a license for Sanofi to use the Matrix M adjuvant in new vaccine products.
- R&D Pipeline: Launched four new early-stage programs in Q1 2025, including vaccines for RSV combination, H5N1 avian influenza, varicella zoster virus, and C. difficile.
- Matrix M Adjuvant: Multiple Material Transfer Agreements signed, including collaborations with two top 10 pharmaceutical companies and a partnered cancer vaccine.
- R21 Malaria Vaccine: Developed with Oxford University and Serum Institute of India, projected to save 180,000 children’s lives by 2030.
- Standalone Flu Vaccine: Phase three trial results showed robust immune responses, with plans to partner for further development.
Future Outlook
- Optimizing Sanofi Partnership: Expecting commercialization of the COVID vaccine in the US and Europe by Fall 2025.
- Potential Partnerships: Aiming to secure additional partnerships leveraging the technology platform beyond the Sanofi deal.
- Investor Day: Scheduled for the second half of 2025 to provide further updates on early-stage pipeline advancements.
For a complete understanding of Novavax’s strategic direction, readers are encouraged to review the full transcript of the conference call.
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