Shares of vaccine producer Novavax (NVAX) took a hit Tuesday following the announcement of a downward revision to its annual revenue prediction. Third-quarter results revealed that the company is now expecting a year-end revenue in the region of $650 million to $700 million, a significant drop from the initially projected $700 million to $800 million. This figure falls short of the $747.6 million estimated by analysts and is well below the company's own $1 billion target set for beyond 2023.
Novavax's third-quarter revenue was down by 55% year-on-year at $85 million, falling from $187 million the previous year, but narrowly exceeding analysts' predictions. The company also reported a smaller net loss than anticipated at $121.3 million or 76 cents per share, which is an improvement over the same period last year when losses amounted to $130.78 million or $1.26 per share.
The disappointing financial forecast led to a 5% drop in Novavax shares on Tuesday morning. This update follows news from the U.S. Food and Drug Administration (FDA) approving the continuation of testing on both combined COVID-19-flu and standalone flu vaccines. With the lifting of its clinical hold on Novavax, the FDA has cleared the way for the company to begin the Phase 3 trial, stating that all clinical hold issues have been adequately addressed.