Shares of global healthcare company Novavax (NASDAQ:NVAX) are surging today, despite a mixed set of first-quarter numbers. The company also announced a major restructuring and cost optimization initiative.
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Owing to seasonal demand for COVID-19 vaccines, revenue plummeted 88.5% year-over-year to $81 million, missing estimates by $13.5 million. Net loss per share at $3.41 though came in narrower than estimates by $0.05.
The company has announced global restructuring and cost reduction measures that are expected to lower SG&A and R&D expenses for 2024 by 40% to 50% as compared to 2022. The move will include a consolidation of the company’s infrastructure alongside a nearly 25% headcount trim worldwide.
Looking ahead, for the full-year 2023, Novavax now expects total revenue to hover between $1.4 billion and $1.6 billion. Combined SG&A and R&D expenses are anticipated between $1.3 billion and $1.4 billion.
Additionally, the company announced promising data from the Phase 2 trial for three vaccines being developed for COVID-19 and flu. The vaccines, under development for influenza, COVID-19, and as a combination of the two indications, showed favorable safety profiles alongside comparable reactogenicity to comparable vaccines on the market.
Novavax shares have nosedived 86% over the past year while short interest in the stock still remains sky-high at ~42% at present.
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