Novavax posted a second straight quarterly profit on updated COVID vaccine sales. The company's next catalyst is a combined flu-COVID shot, with Phase 3 data expected in coming quarters.
Novavax reported its second consecutive quarterly profit on August 6, driven by sales of its updated COVID-19 vaccine. The company is now betting on a combined flu-COVID shot to sustain growth.
CEO John Jacobs said the profitability came from vaccine revenue, without offering new financial guidance beyond the reported results. The combined vaccine, if approved, would put Novavax in direct competition with mRNA combination candidates from Pfizer and Moderna.
Analysts from Jefferies, TD Cowen, Cantor Fitzgerald, BofA Securities, BTIG, JPMorgan, and B. Riley joined the call. They asked about the combined vaccine’s timeline and early uptake of the updated COVID shot, according to the transcript.
The risk for Novavax is its dependence on a COVID vaccine market that has shrunk from pandemic peaks. The two straight quarters of profit are encouraging. Sustaining them requires strong commercial execution on the updated shot and steady progress on the combined program. Any delay in the combined vaccine’s development or a regulatory setback could weigh on the stock, analysts said.
The next major milestone is the combined vaccine’s Phase 3 data, expected in the coming quarters. The company also faces manufacturing scale-up and the challenge of convincing a public that has largely moved on from COVID shots to adopt a new annual combo.
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