Novavax ( NVAX ) cut its 2022 outlook on falling demand for Covid vaccines, sending NVAX shares crashing on Tuesday.
The decision followed a major disappointment in the second quarter where sales came in at less than a fifth of what analysts had estimated. Furthermore, Novavax reported an unexpected loss that increased compared to last year’s second quarter. Wall Street had expected Novavax to post a second consecutive quarter of gains.
In early trading on today’s stock market, NVAX shares fell 27.1% near 41.80.
“Novavax adjusted its 2022 guidance to account for several evolving market dynamics,” the company said in a written statement. “We remain confident in our vaccine as a strong add-on choice. Its competitive product profile includes the vaccine’s (efficacy), well-tolerated safety profile, durability of protection and ability to handle both current and future variant strains.”
NVAX stock: Different from Pfizer, Moderna
Novavax relies on its protein technology to set it apart Pfizer‘s (PFE) and Modern‘s (MRNA) messenger RNA-based Covid shot. Novavax’s vaccine is available for adults in 43 countries, including the United States. It also has a booster shot in three countries.
But investors hammered NVAX stock after the second-quarter report. Sales fell nearly 38% to $185.9 million, missing forecasts for $1.02 billion. Novavax also lost $6.53 per share. Analysts expected earnings per share of $5.54. Losses also widened from $4.75 in the same period a year earlier.
The company says it is making “tremendous progress” in the third quarter and has already shipped more than 23 million doses since the beginning of July. It is important to note that in the USA the vaccine is only available to adults who have not received a Covid injection. That’s about 10% of adults.
“While in some cases delivery may be pushed into 2023, we do not expect total contracted demand to change under most of our forward purchase agreements,” Novavax said.
Still, the company cut its 2022 outlook in half and now expects $2 billion to $2.3 billion in sales. That pales in comparison to NVAX stock analysts’ call for $4.27 billion. Still, sales would nearly double at the midpoint of Novavax’s guidance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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