Novavax Hikes 2026 Revenue Outlook Despite 76% Q2 Revenue Decline

The Maryland-based company is focusing on licensing its protein-based vaccine platform and Matrix-M adjuvant, while cutting costs ‌and moving away ⁠from ⁠direct vaccine sales to restore growth and profitability.

It is mostly relying on its licensing ​agreement with Sanofi to reach profitability by 2028. The pact gave Sanofi rights to ​commercialize Novavax's COVID-19 vaccine and use its Matrix-M adjuvant - a compound that boosts the body's immune response to vaccines.

Despite a recent leadership shake-up at ​Sanofi, the French drugmaker is "leaning in, not away" ⁠from the ‌partnership with "more engagement behind the scenes", Novavax CEO ​John Jacobs said ​on a call with analysts.

Novavax expects 2026 adjusted ⁠revenue of $235 million to $275 million, up from $230 million to $270 ​million forecast earlier, excluding royalties and sales from the ​Sanofi deal.

The company also said Sanofi was in advanced discussions with regulators over the timing of a late-stage trial for their COVID-19-influenza combination shot.

Earlier this year, the European Commission approved Moderna's messenger RNA-based COVID-flu combination shot in adults 50 years of age and older.

Moderna on Wednesday ‌got U.S. approval for its mRNA flu vaccine, the first-of-its-kind for this indication.

"I think it's good for all ​vaccine companies. ​To us, we read that... ⁠as momentum in the U.S. regulatory environment, especially for seasonal respiratory vaccines and targets," Jacobs told Reuters in an interview.

U.S. vaccine makers have been ​navigating regulatory uncertainty following heightened FDA scrutiny that unsettled the industry and ultimately led to a series of leadership changes.

Novavax's second-quarter revenue fell 76% year-on-year to $57 million, but topped analysts' expectations of $52.51 million, according to data compiled by LSEG.