Novavax Inc has halved its full-year revenue forecast on Monday, as it does not expect more sales of its COVID 19 shot this year in the United States in the face of a global supply glut and soft demand, sending its shares down 33 per cent.
Novavax now expects total revenues of $2 billion to $2.3 billion in the year 2022, compared to its previous forecast of $4 billion to $5 billion.
The shot was authorized for use among adults in the United States last month, where it was seen as driving uptake among those skeptical of the ground-breaking messenger RNA technology from market leaders Pfizer and Moderna.
According to the latest government data, only 7,381 Novavax vaccine doses have been administered in the country.
"I believe we were late to the market, and U.S. vaccination was driven by what was available and shown to work, mRNA vaccines," said Stanley Erck, Chief Executive Officer.
The dismal outlook is the latest setback for Novavax's protein-based shot, which has been plagued by regulatory delays and sluggish uptake in key markets like Europe.
Novavax said it doesn't expect an order from the COVAX facility in 2022, which is backed by the World Health Organization and the global vaccine alliance Gavi.
The company said it expects to deliver more doses in the second half of the year and into 2023 as customers spread out their orders, despite the fact that there has been no reduction in orders.
Revenues from Novavax have been over $400 million since July 1, it said.