Novavax, Inc. (NASDAQ:NVAX) Stock Move Reflects Expectations

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) stock price gained nearly 2% the day after the biotechnology company released their Q2 2017 financial results. Novavax reported a Q2 2017 quarterly loss of (-$44.5), on $6.7 million in revenue, or (-$0.16) per share. Results basically met street expectations. Novavax stock closed today at $0.99 on normal volume. Novavax stock price chart:

Novavax, Inc. (NASDAQ:NVAX)
One month stock price chart for NVAX

Gaithersburg, MD-based Novavax, Inc. (Nasdaq:NVAX) is a clinical-stage biotechnology company that develops prducts, including vaccines, to prevent a broad range of infectious diseases. The company utilizes recombinant nanoparticles and Matrix-M™ adjuvant technology. Their product pipeline targets a variety of infectious diseases, with clinical vaccine candidates for respiratory syncytial virus (RSV) and Ebola virus (EBOV), and preclinical programs for Zika virus (ZIKV), seasonal influenza and a combination respiratory vaccine candidate, as well as other infectious disease vaccine candidates.

Novavax Financials

Research and development expenses decreased 40% to $39.3 million in the second quarter of 2017, compared to $64.9 million for the same period in 2016. The decrease was primarily due to reduced costs associated with the clinical trials and development activities of Novavax’s RSV F Vaccine and lower employee-related costs.

SG&A expenses decreased 37% to $8.9 million in Q2 2017, compared to $14.1 million for the same period in 2016. The decrease was primarily due to lower professional fees for pre-commercialization activities and lower employee-related costs.

Novavax stock has been a poor performer. YTD, Novavax shares have been down over 21% and are down over 86% for the year. Per share losses have been expanding ever since 2012 when Novavax posted a per share loss of (-$0.22). By 2016 that loss had broadened to (-$1.03). Likewise, dilution has been a real issue for stockholders. The number of outstanding shares has more than doubled since 2012 when the number was posted at 131.73 million. By 2016 that number was over 270 million.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Positive News from Novavax, Inc. (NASDAQ:NVAX) Underwhelms Market

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) shares dropped over 27% after the company released news concerning their drug candidates that clearly underwhelmed the market. NVAX shares closed Monday at $1.51, then gapped down to open at $1.27 which was also its high for the day. After hitting a lot of $1.05, shares rebounded slightly to close at $1.10 on a volume about five times their average.

NASDAQ:NVAX
Daily Candle Graph $NVAX

Novavax, Inc. (NASDAQ:NVAX), based in Gaithersburg, MD, is a clinical-stage biotechnology company that develops vaccines to prevent a broad range of infectious diseases. Yesterday, Novavax, Inc. (NASDAQ:NVAX) announced topline data from its safety and immunogenicity Phase 2 trial of their RSV F Vaccine in older adults, new preclinical data on its RSV F Vaccine construct, additional findings from the prior Phase 2 and Phase 3 clinical trials in older adults (E201 and E301), and an operational update on the Phase 3 clinical trial of the RSV F Vaccine for infants via maternal immunization, known as Prepare. The data supports a positive view regarding the inclusion of adjuvant and the administration of a second dose.

Regardless of the positive news, the market clearly was disappointed. Last year Novavax, Inc. (NASDAQ:NVAX) had a reduction in force of almost a third of its employees and still posted a loss over $40 million for Q1 2017.  Expanding losses have been normal for Novavax, Inc. (NASDAQ:NVAX). In 2012 the company posted a small per share loss of (-$0.22) but that losss increased in each of the following years and in 2016 Novavax posted the loss at (-$1.03). On top of that, sales decreased from $36.3 million in 2015 to $5.4 million in 2016. Six investment firms follow Novavax, Inc. (NASDAQ:NVAX). Five rate NVAX shares as a “Hold” while only one rates the shares as a “Strong Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $NVAX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Novavax, Inc. (NASDAQ:NVAX) Reports Q1 Revenues of $5.7 million

Novavax, Inc. (NASDAQ:NVAX)

Novavax, Inc. (NASDAQ:NVAX) has announced its financial results for the first quarter of 2017. In a statement, Novavax President and CEO Stanley C. Erck said the company made a lot of progress in the implementation of key clinical studies of the RSV F vaccine for maternal immunization to infants as well as for use in adults. The company expected to report positive data from the adult trial in 90 days.

In addition, the company has announced holding talks with the FDA to undertake an informational analysis of the Prepare study which is aimed at establishing the level of efficacy of the vaccine.

Novavax, Inc. (NASDAQ:NVAX) reported a net loss of (-$43.9) million or (-$0.16) per share in the first quarter compared to the (-$77.3) million or (-$0.29) per share reported in the first quarter of the previous financial year.

The company’s revenue in the quarter amounted to $5.7 million which is a 35% increase from the $4.2 that was reported in the same period in 2016. The increase is as a result of increase in revenue from the BMGF grant that was granted in relation to the ongoing Prepare clinical study.

Research and development expenses amounted to $37.7 million, a 45% decrease from the $69 million that was reported in Q1 of 2016. The reduction is attributed to decrease in costs associated with clinical studies as well as development activities related to the RSV F Vaccine. The company also reported lower employee-related costs in the quarter.

The company reported $8.9 million in general and administrative expenses in Q1 2017 representing a 16% decrease, attributed to reduced professional fees for pre-commercialization activities, from the $10.5 million that was reported in Q1 2016. The company reported $3 million in net interest income compared to $1.9 million that was reported in Q1 of 2016.

At the close of the quarter, Novavax, Inc. (NASDAQ:NVAX) had $211.2 million in cash and cash equivalents compared to the $235.5 million that the company had at the close of the last financial year ended December 31, 2016. Net cash used in operating activities amounted to $38.6 million compared to $69.8 million in the same period of the previous financial year.

Novavax, Inc. (NASDAQ:NVAX) closed at $1.09 gaining 5.83% on a volume of 4.52 million shares.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.