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

Sanofi SA

06/08/2026 17:31

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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;))