NovavaxNVAX recorded a loss of 19 cents per share in the third quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 37 cents. The company had incurred a loss of $1.25 per share in the year-ago quarter.
Revenues declined 3% year over year to $68 million, as the increase in Product sales was offset by a decline in Licensing, royalties and other. The reported figure, however, beat the consensus mark of $51 million. Shares fell 8.2% following the release, possibly as investors focused on the one-time SanofiSNY milestone driving most of the raised 2026 revenue outlook and the company's dependence on a potential 2029 U.S. vaccine launch to achieve non-GAAP profitability.
NVAX's Revenue Mix Reflects Partner Transition
Product sales totaled $25.7 million, up 91% year over year, primarily comprising Nuvaxovid supply to Sanofi and Matrix-M adjuvant supply to licensing partners. With Sanofi leading Nuvaxovid commercialization in select markets, Novavax has shifted away from direct vaccine marketing.
Licensing, royalties and other revenues declined 25% to $42.6 million from $57 million. The main drag was a $42 million year-over-year drop in R&D reimbursements as Sanofi-related clinical support approached completion. The third quarter of 2026 included $11 million in noncash recognition of royalties previously deferred on earlier Nuvaxovid sales in South Korea.
Year to date, shares of Novavax have surged 45.5% compared with the industry's 11.9% growth.
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Novavax Cuts Costs as Its Operating Model Shrinks
Research and development (R&D) expenses fell 47% to $52.4 million from $98.3 million. The decline reflected near-completion of Sanofi clinical support, reduced work on seasonal Nuvaxovid strain changes and ongoing cost reductions.
Selling, general and administrative (SG&A) expenses dropped 25% to $23.6 million from $31.7 million, following the transfer of lead commercial activities to Sanofi and elimination of commercial infrastructure. The prior-year loss also included $126 million in noncash charges related to asset impairments and debt extinguishment.
As of Sept. 30, 2026, Novavax had $627 million in cash, cash equivalents, marketable securities and restricted cash compared with $724 million in the previous quarter.
NVAX Raises Its 2026 Adjusted Revenue Framework
Novavax raised its full-year 2026 adjusted total revenue outlook to $385-$415 million from $235-$275 million, a $145 million midpoint increase. The $125 million milestone earned in October when Sanofi began a phase III influenza-COVID-19 combination vaccine study in Europe accounts for most of the revision.
Of the remaining $20 million, $5 million each came from higher Nuvaxovid product sales and adjusted supply sales expectations. Another $10 million came from adjusted licensing, royalties and other revenues, largely reflecting the deferred royalty recognized in the quarter. The framework excludes Sanofi supply sales, royalties and future milestone payments.
Combined R&D and SG&A expense guidance narrowed to $375-$395 million from $370-$410 million, lowering the midpoint by $5 million. The adjusted combined R&D and SG&A expense range, excluding partner reimbursements, is now $315-$335 million compared with the previous guidance of $310-$340 million.
Novavax, Inc. Price, Consensus and EPS Surprise
Novavax, Inc. price-consensus-eps-surprise-chart | Novavax, Inc. Quote
Novavax Eyes Further Sanofi Milestone Payments
Sanofi's European phase III study combines Nuvaxovid with its high-dose flu vaccine for adults aged 60 and older. The partner intends to initiate a U.S. phase III combination study in 2027. A first U.S. commercial sale following successful clinical development and regulatory approval could trigger a further $225 million payment to Novavax.
Completion of Nuvaxovid manufacturing technology transfer to Sanofi, targeted for mid-2027, would generate an additional $75 million milestone. Novavax is also eligible for high-single-digit to sub-teen royalties on global combination-vaccine sales and high-teens to low-twenties royalties on Sanofi's Nuvaxovid net sales. Management linked the prospective 2029 U.S. combination launch to its timing for non-GAAP profitability.
NVAX Advances C. Diff, Matrix-M Work With Pfizer
Novavax's multivalent C. difficile vaccine program could enter clinical testing as early as 2027. Preclinical results presented in September showed strong neutralizing-antibody and intestinal IgA responses, along with protection in lethal animal challenge models. Management believes the candidate could cover more than 90% of circulating strains and offer broader protection than toxin-only approaches.
Meanwhile, PfizerPFE, which signed a non-exclusive Matrix-M licensing agreement earlier in 2026, remains among Novavax's key partners. Exploratory work involving Pfizer and other partners is ongoing, while Novavax is evaluating Matrix-M across established infectious-disease vaccines and early oncology models. The company intends to leverage these findings to support additional licensing opportunities and seek partners for its internally developed vaccine candidates.
NVAX's Zacks Rank
Novavax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
