NVAX · Novavax, Inc.

Novavax's Q1 2026 results reflect a strategic shift from high non-cash COVID-19 vaccine revenue in the prior year, driven by $603 million from APA close-outs, to a more sustainable model emphasizing Matrix-M adjuvant partnerships. Total revenue fell to $140 million, with product sales dropping 93% to $42 million as Nuvaxovid sales declined sharply to $10 million, offset by 139% growth in supply sales to $33 million and licensing/royalties surging 116% to $97 million, including the $30 million Pfizer upfront. Gross costs rose to $31 million due to higher supply volumes. R&D expenses increased modestly to $95 million GAAP ($68 million non-GAAP net), tied to COVID post-marketing and strain changes, while SG&A fell 40% to $29 million from commercial transition to Sanofi and cost cuts. This yielded a $9 million net loss versus prior year's $519 million income. Cash strengthened to $795 million, bolstered by the Pfizer payment and a $330 million MidCap credit facility with $50 million drawn. Management, led by CEO John C. Jacobs, highlighted Matrix-M momentum with Pfizer's non-exclusive license for two infectious diseases (potential billions in lifetime revenue), four new/expanded MTAs covering over 30 fields and >50% of a $100B+ market, plus internal advances like C. difficile vaccine for 2027 clinic entry. Reiterated 2026 guidance signals confidence: $310-340 million non-GAAP R&D/SG&A (midpoint $325 million), targeting further cuts to $225 million in 2027 and $150-200 million in 2028, alongside $230-270 million adjusted revenue excluding variable Sanofi items. Sanofi data reinforced Nuvaxovid's superior reactogenicity. This positions Novavax for capital-efficient growth via tech licensing amid lean operations.