Novavax (NVAX) Q1 2025 earnings summary

Executive summary

• Q1 2025 total revenue reached $667 million, up from $94 million in Q1 2024, driven by $603 million recognized from terminated APAs and higher licensing revenue, with net income of $519 million, reversing a net loss of $148 million in Q1 2024.

• Strengthened partnerships with Sanofi and Takeda, improving financial terms, expanding commercialization opportunities, and signing new MTAs for Matrix-M applications.

• Advanced clinical pipeline with four new early-stage programs and late-stage combination and flu vaccine trials, including Matrix-M collaborations.

• Operating expenses, specifically combined R&D and SG&A, were reduced by 24% year-over-year for Q1, reflecting ongoing restructuring and cost containment.

• Maintains strong liquidity with $747 million in cash and equivalents and working capital of $445.9 million as of March 31, 2025.

Financial highlights

• Q1 2025 product sales were $622 million, primarily from APA closeouts; licensing, royalties, and other revenue totaled $45 million, mainly from Sanofi.

• Cost of sales dropped to $14 million from $59 million year-over-year.

• R&D expenses decreased to $89 million; SG&A expenses fell to $48 million, reflecting cost reductions.

• Net income per share was $3.22 basic and $2.93 diluted, compared to a loss of $1.05 per share in Q1 2024.

• Cash and equivalents at $747 million as of March 31, 2025.

Outlook and guidance

• Full-year 2025 revenue framework raised to $975–$1,025 million, with eligibility for up to $225 million in Sanofi milestones and $20 million upfront from Takeda in Q2 2025.

• Combined R&D and SG&A expense guidance reiterated at $475–$525 million for 2025, targeting a 30% reduction from 2024.

• Expects further cost reductions in R&D and SG&A for the remainder of 2025 due to ongoing restructuring.

• BLA approval for COVID-19 vaccine by the U.S. FDA is pending; approval would trigger a $175 million milestone from Sanofi.

• Expects to have sufficient capital to fund operations for at least one year from the reporting date.