Novavax raises annual revenue forecast as licensing bets offset weak vaccine demand (updated)

Novavax

06/08/2026 17:31

Adds executive comment in paragraph 4 and 9, background in paragraph 10
By Kamal Choudhury and Mariam Sunny
Aug 6 (Reuters) - Novavax NVAX.O raised its annual revenue forecast on Thursday, banking on payments related to the vaccine maker's licensing and supply agreements.
The Maryland-based company is focusing on licensing its protein-based vaccine platform and Matrix-M adjuvant, while cutting costs and moving away from direct vaccine sales to restore growth and profitability.
It is mostly relying on its licensing agreement with Sanofi SASY.PA to reach profitability by 2028. The pact gave Sanofi rights to commercialize Novavax's COVID-19 vaccine and use its Matrix-M adjuvant — a compound that boosts the body's ​immune response to vaccines.
Despite a recent leadership shake-up at Sanofi, the French drugmaker is "leaning in, not away" from the partnership with "more engagement behind the scenes", Novavax CEO John Jacobs said on a call with analysts.
Novavax expects 2026 adjusted revenue of $235 million to $275 million, up from $230 million to $270 million forecast earlier, excluding royalties and sales from the Sanofi deal.
The company also said Sanofi was in advanced discussions with regulators over the timing of a late-stage trial for their COVID-19-influenza combination shot.
Earlier this year, the European Commission approved Moderna's MRNA.O messenger RNA-based COVID-flu combination shot in adults ‌50 years of age and older.
Moderna on Wednesday got U.S. approval for its mRNA flu vaccine, the first-of-its-kind for this indication.
"I think it's good for all vaccine companies. To us, we read that... as momentum in the U.S. regulatory environment, especially for seasonal respiratory vaccines and targets," Jacobs told Reuters in an interview.
U.S. vaccine makers have been navigating regulatory uncertainty following heightened FDA scrutiny that unsettled the industry and ultimately led to a series of leadership changes.
Novavax's second-quarter revenue fell 76% year-on-year to $57 million, but topped analysts' expectations of $52.51 million, according to data compiled by LSEG.

 (Reporting by Kamal Choudhury and Mariam Sunny in Bengaluru; Editing by Vijay Kishore ans Shilpi Majumdar)
 ((Kamal.Choudhury@thomsonreuters.com;))