Novavax executives slash sales guidance, stock plunges

Novavax Inc. executives slashed their sales guidance in half Monday, while wildly missing financial expectations, sending shares down more than 30% in after-hours trading.

Novavax NVAX projected total revenue of $2 billion to $2.3 billion by the end of 2022, after previously stating a goal of $4 billion to $5 billion. In an unsigned statement issued separately from financial results, Novavax executives said that the adjustment was made to account for several evolving market dynamics, because Novavax's COVID- 19 vaccine does not use the same technology as vaccines from Pfizer Inc. PFE and Moderna Inc. MRNA. Executives stated that we remain confident in our vaccine as a strong additional choice. Its competitive product profile includes our vaccine's efficacy, well-tolerated safety profile, durability of protection and ability to address both current and future variant strains. In Q 3, we are already making great progress, the statement continued. We have shipped over 23 million doses since the beginning of July, but we do not believe total contracted demand will change under the majority of our Advance Purchase Agreements. In the second quarter, Novavax reported a loss of $510.5 million, or $6.53 a share, down from a loss of $4.75 a share a year ago, on sales of $185.9 million, down from $298 million last year. Analysts on the average expected earnings of $5.54 a share on sales of $1.02 billion, according to FactSet. Shares closed with a 5% decline at $57.25, and dove more than 30% in after-hours trading. The stock has declined 60% so far this year, as the S&P 500 index SPX has dropped 13%.