Novavax (NASDAQ:NVAX) raised its 2026 revenue framework after partner Sanofi began a late-stage trial of a combination influenza and COVID-19 vaccine in Europe, triggering a $125 million milestone payment for the vaccine technology company.
The company also reported a narrower third-quarter net loss and outlined plans to cut expenses and headcount as it pursues additional partnerships and advances an experimental C. diff vaccine.
Sanofi Trial and Future Milestones
Sanofi’s phase 3 trial in Europe is evaluating the safety and immunogenicity of Novavax’s Nuvaxovid COVID-19 vaccine combined with Sanofi’s Fluzone High-Dose influenza vaccine in adults aged 60 and older, Chief Strategy Officer Elaine O’Hara said.
Sanofi has confirmed to Novavax that it is targeting the start of a U.S. phase 3 trial in 2027 to support U.S. approval, according to executives. Novavax is eligible for a one-time $225 million milestone upon the first commercial sale of a combination product in the United States.
Kelly said a potential U.S. launch in 2029, and the associated milestone, is a primary contributor to the company’s expected timing for non-GAAP profitability. He cautioned that Novavax does not have access to Sanofi’s detailed plans or timelines and relies on the partner’s public statements and confirmations.
Novavax also expects a $75 million milestone upon completion of manufacturing technology transfer to Sanofi, targeted for mid-2027. O’Hara said the companies are working through the required activities.
Sanofi has expanded its promotional efforts for Nuvaxovid during the 2026–2027 season, including retailer pilots and direct-to-consumer advertising. Kelly said shots administered so far this season had already equaled the full prior season’s total, and Novavax expects materially higher administration for the season as a whole.
Loss Narrows as Costs Fall
Third-quarter revenue was $68 million, down from $70 million a year earlier. Kelly said growth in several revenue categories offset much of a $42 million decline in research and development reimbursement as Novavax nears completion of certain support activities for Sanofi.
The company reported a net loss of $31 million, compared with a $202 million loss in the prior-year quarter. The 2025 result included $126 million in noncash charges related to asset impairments and debt extinguishment.
Combined research and development and selling, general and administrative expenses fell 41% year over year on a GAAP basis. Novavax ended the quarter with $676 million in cash and accounts receivable, Kelly said.
The company lowered its full-year combined GAAP expense guidance midpoint by $5 million to $385 million. On a non-GAAP basis, net of partner reimbursements, it maintained a midpoint of $325 million and narrowed the range to $315 million to $335 million.
Novavax aims to reduce combined non-GAAP research and development and selling, general and administrative expenses to between $150 million and $200 million by 2028. To reach its operating-model target, the company expects to have less than half its first-quarter 2026 headcount and is exploring a reduction of more than 50% in its operating footprint.
Kelly said the company’s expected cash runway extends into 2029, supported by the $125 million Sanofi milestone and the anticipated $75 million technology-transfer payment.
C. Diff and Oncology Research
Novavax plans to bring its Matrix-M-adjuvanted C. diff vaccine candidate into clinical testing as early as 2027. Head of Research and Development Bob Walker said the company has selected a lead candidate that targets both toxin and non-toxin antigens.
Walker said preclinical studies showed neutralizing antibody responses, gastrointestinal mucosal immune responses and protection from death in two animal challenge models. He added that the company’s confidence remains based on preclinical data and that clinical results will be the next point for assessing the candidate.
The company is also conducting early exploratory work with Matrix-M in oncology, including animal studies of the adjuvant alone and in combination with immunomodulators. Walker said Novavax is looking broadly at potential applications, including both personalized and off-the-shelf approaches, but emphasized that the work remains at an early stage.
O’Hara said Novavax’s primary intent is to out-license its internally developed candidates and use research data to support new or expanded partnerships. The company is also conducting preclinical work with collaborators, including Pfizer and Sanofi, across infectious disease and oncology.
About Novavax (NASDAQ:NVAX)
Novavax, Inc is a biotechnology company focused on developing and commercializing vaccines for infectious diseases. The company uses recombinant protein nanoparticle technology and its proprietary Matrix-M adjuvant to develop vaccines designed to stimulate targeted immune responses.
Novavax’s principal commercial product is Nuvaxovid, also known as the Novavax COVID-19 vaccine, a protein-based vaccine developed to help prevent COVID-19. The vaccine has been authorized or approved in various markets, subject to local regulatory requirements, and the company has worked with governments, public-health organizations, and pharmaceutical partners to support its distribution internationally.
Founded in 1987, Novavax is headquartered in Gaithersburg, Maryland.
