Novavax will be letting go 25 percent of its workforce in an effort to cut expenses and consolidate facilities and infrastructure. The biotech company plans to trim next year’s costs for research and development, as well as selling, general and administrative expenses by about 40 to 50 percent, compared with 2022.
This follows Novavax’s first-quarter financial results, wherein the company reported a net loss of $294 Million compared to a net income of $203 Million in the same period in 2022, and cash equivalents of $637 Million, a little more than half of the $1.3 Billion reported in the previous quarter. But the Maryland-based company expects to generate revenue of about $1.4 Billion and $1.6 Billion for 2023.
John Jacobs, CEO of Novavax, said they outlined significant measures intended to reduce spend, extend cash runway, and operate more efficiently. “Combined with our focus on revenue generation from Nuvaxovid and management of our current liabilities, these measures should strengthen our cash position and our potential for the long-term growth and stability of Novavax.”
He pointed out that slashing workforce was necessary to better align Novavax’s infrastructure and scale to the endemic COVID opportunity. The company is updating the COVID vaccine and also developing a fly shot and a coronavirus-flu shot combination. It received positive Phase 2 data that supports further development of its combination COVID-influenza, standalone influenza, and high-dose COVID vaccines.