Novavax shares plunge as company halves revenue forecast on low COVID-19 vaccine demand

Novavax Inc on Monday cut its full-year revenue forecast by half, as the vaccine maker battles low demand for its COVID-19 shot, sending its shares down 32% in extended trading.

Novavax said it now expects 2022 total revenue in the range of $2 billion to $2.3 billion, compared with its prior forecast of $4 billion to $5 billion.

The company’s protein-based COVID-19 vaccine received authorisation in the United States in July for use among adults.

Health officials hope that the shot’s more traditional technology would convince those skeptical of messenger RNA technology from Pfizer and Moderna to get vaccinated.

Only 7,381 doses administered in U. S.

However, only 7,381 doses of the vaccine have been administered in the United States so far, according to the latest government data.

The company sold 3 million doses of the vaccine, recording $55 million in sales in the second quarter ended June 30. This compares to $586 million in the first quarter.

Novavax has also faced manufacturing hurdles and regulatory delays, and the vaccine’s uptake in key markets such as Europe has been sluggish.

In May, Novavax had maintained its full-year revenue guidance despite shipping less than a fourth of its total vaccine deliveries targeted for 2022, banking on an increase in sales of the shots to key markets in the coming quarter.

Novavax said it expects to file for authorization of its COVID-19 vaccine tailored to the Omicron variant to U.S. health regulators in the fourth quarter of this year.

Novavax has been developing an Omicron-tailored vaccine to protect against BA.4 and BA.5, the two currently dominant subvariants, and had previously said it expects to provide the shot in the fourth quarter.

Novavax shares were trading at $38.80 in extended trading. The stock has fallen more than 60% so far in the year.