Novavax (NVAX) investor relations material

Executive summary

• Strategic transformation centers on partnerships, targeted R&D innovation, and a lean operating model, driving value creation and cost reductions.

• Four of the top 10 global pharma companies, including Pfizer and Sanofi, have Matrix-M agreements, with up to $500 million in milestones and royalties.

• Sanofi partnership is progressing with advanced regulatory discussions, commercial launches in multiple countries, and significant milestone and royalty potential.

• Internal pipeline advancing, notably with a differentiated C. difficile vaccine candidate and ongoing oncology collaborations.

• Operating expenses and headcount have been significantly reduced, targeting a 90% reduction from peak levels by 2028.

Financial highlights

• Q2 2026 total revenue was $57 million, down from $239 million in Q2 2025, mainly due to lower milestone payments and nonrecurring APA terminations.

• Product sales reached $19 million, up 76% year-over-year, driven by Matrix-M demand from partners.

• Net loss for Q2 2026 was $53 million; cash and equivalents at quarter-end totaled $743 million.

• Non-GAAP combined R&D and SG&A expenses reduced by 36% year-over-year in Q2 2026.

• Q2 2026 basic and diluted EPS: $(0.32).

Outlook and guidance

• Full-year 2026 adjusted total revenue guidance is $235–$275 million, with the majority expected in Q4.

• Non-GAAP combined R&D and SG&A expense guidance for 2026 is $310–$340 million.

• Eligible for up to $425 million in Sanofi milestone payments and high-teen to low-twenties royalties on global net sales.

• Targeting non-GAAP profitability and a 50% reduction in partner and APA support activities by 2028.

• Cash runway expected to extend into 2029 with anticipated milestone payments.