Novavax Reports Second Quarter 2011 Financial Results

Gaithersburg, Maryland, UNITED STATES


ROCKVILLE, Md., Aug. 5, 2011 (GLOBE NEWSWIRE) -- Novavax, Inc. (Nasdaq:NVAX) today announced financial results for the second quarter ended June 30, 2011.

Novavax reported a net loss of $5.0 million, or $0.04 per share, for the second quarter of 2011 compared to a net loss of $8.9 million, or $0.09 per share, for the second quarter of 2010. For the six months ended June 30, 2011, the net loss was $12.4 million, or $0.11 per share, compared to a net loss of $19.2 million, or $0.19 per share, for the same period in 2010. The primary reason for the decreased loss for the second quarter of 2011 as compared to the same period in 2010 was higher revenue associated with the company's activities under its contract with the Office of Biomedical Advanced Research and Development Authority (BARDA) within the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services (HHS), awarded in February 2011, as well as lower research and development spending to support the company's clinical trials related to its vaccine candidates.

Research and development expenses for the second quarter of 2011 were $5.6 million as compared to $6.3 million in the same period in 2010. General and administrative expenses were $3.3 million for the second quarter of 2011 as compared to $3.1 million in the same period in 2010.

As of June 30, 2011, the company had $22.3 million in cash, cash equivalents and short-term investments compared to $31.7 million as of December 31, 2010.

Second Quarter 2011 Highlights:

  • Recorded revenue of $3 million for seasonal and pandemic influenza vaccine development work performed under the HHS BARDA contract
  • Completed enrollment of a 150 subject Phase I clinical study of a novel vaccine candidate to prevent respiratory syncytial virus (RSV)
  • Appointed new vice presidents of clinical and medical affairs, regulatory affairs and manufacturing; and
  • Named biotechnology firm of the year by Tech Council of Maryland

"The award of the HHS BARDA contract and the expansion of our senior management team have strengthened our ability to advance our vaccine pipeline," said Stanley Erck, President and CEO of Novavax. "The BARDA relationship is off to a great start. During the coming months we look forward to initiating new clinical studies under the HHS BARDA contract as well as evaluating data from our first RSV clinical trial."

Conference Call

Novavax's management will host its quarterly conference call today at 10:00 a.m. EDT today. The live conference call will be accessible on Novavax's website at www.novavax.com under "Investor/Events" or by telephone at 1 (877) 212-6076 (domestic) or 1 (707) 287-9331 (international). A replay of the webcast will be available on the Novavax website for 90 days after the call and a replay of the conference call will be available beginning today at 1:00 pm through November 2, 2011. To access the replay of the conference call, dial 1 (855) 859-2056 (domestic) or 1 (404) 537-3406 (international) and enter pass code 88315753.

About Novavax

Novavax, Inc. (Nasdaq:NVAX), a clinical-stage biopharmaceutical company, employs its cutting-edge technology to create next-generation vaccines to prevent serious infectious diseases, such as pandemic and seasonal influenza and respiratory syncytial virus (RSV). The company's proprietary virus-like-particle (VLP) technology and single-use bioprocessing system enable rapid vaccine development and production where and when they are needed, worldwide. The company has formed a joint venture with Cadila Pharmaceuticals, named CPL Biologicals, to develop and manufacture vaccines, biological therapeutics and diagnostics in India. Additional information about Novavax is available on the company's website: www.novavax.com.

Forward Looking Statements

Statements herein relating to future financial or business performance, conditions or strategies and other financial and business matters, including expectations regarding revenue, operating expenses, use of cash, clinical developments and other activities related to our VLP vaccines, are forward-looking statements. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include those identified under the heading "Risk Factors" in the Novavax Annual Report on Form 10-K for the year ended December 31, 2010, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and filed with the Securities and Exchange Commission. We caution investors not to place significant reliance on the forward-looking statements contained in this release. These forward-looking statements speak only as of the date of this earnings release and Novavax assumes no duty to update such statements.

NOVAVAX, INC.
CONDENSED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
         
         
  Three Months Ended Six Months Ended
  June 30, June 30,
  2011 2010 2011 2010
  (unaudited) (unaudited)
Revenue  $ 3,001  $ 7  $ 3,835  $ 117
         
Operating expenses:        
Research and development 5,584 6,327 10,998 15,356
General and administrative 3,338 3,148 6,188 5,683
Total operating expenses 8,922 9,475 17,186 21,039
Loss from operations (5,921) (9,468) (13,351) (20,922)
Interest income (expense), net 36 42 80 84
Change in fair value of warrant liability 1,304 569 1,237 1,638
Loss from operations before income tax (4,581) (8,857) (12,034) (19,200)
Income tax expense 412 412
Net loss  $ (4,993)  $ (8,857)  $ (12,446)  $ (19,200)
         
Basic and diluted net loss per share  $ (0.04)  $ (0.09)  $ (0.11)  $ (0.19)
Basic and diluted weighted average        
number of common shares outstanding 112,821 100,694 112,009 100,442
         
SELECTED BALANCE SHEET DATA
(in thousands)
 
  June 30,  
2011
December 31, 2010
  (unaudited)  
Cash and cash equivalents $ 13,092 $ 8,061
Short-term investments  9,229  23,615
Total current assets  28,416  33,337
Working capital  19,421  23,071
Total assets  69,346  74,844
Total notes payable  360  400
Total stockholders' equity  56,271  59,050


        

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