(Reuters) -Novavax’s fourth-quarter loss narrowed on Thursday, helped by reduced selling and administrative expenses of COVID-19 vaccines, its only product on the market.
The company has struggled to keep up with the pace of rivals Moderna and Pfizer, which make messenger RNA-based vaccines compared to its protein-based shot.
Novavax signed a deal worth at least $1.2 billion with French drugmaker Sanofi in May to hand over the rights to sell its vaccines in several markets, including the U.S. and Europe, in exchange for a stake in the company.
The Maryland-based company said it would continue to sell the shots in the U.S. during the first half of this year, as it transitions the market to Sanofi beginning with the 2025-2026 vaccination season.
Shares of Novavax, along with other vaccine makers, had fallen after vaccine critic Robert F. Kennedy Jr. was confirmed as secretary of the Department of Health and Human Services on February 13.
Novavax said it was uncertain about the regulatory environment with the new Trump administration, and said its business may be negatively impacted if any constraints were placed on the U.S. Food and Drug Administration’s ability to review products.
President Donald Trump and Tesla chief Elon Musk have sought to dramatically cut government spending, including the $47 billion annual budget for National Institutes of Health.
Novavax reported quarterly sales of $49.8 million for COVID vaccines, down 80.2% from the year earlier.
It is banking on revenue from its Sanofi deal and vaccines in development, including an experimental COVID-flu combination shot and for bird flu, which is in pre-clinical stage.
Novavax said it was eligible to receive royalties in high teens to low twenties percent on Sanofi sales, along with $350 million in commercial launch payments associated with the COVID-flu combination products.
Its net loss was $81 million for the quarter ended December 31, compared with a net loss of $178.3 million a year ago.
(Reporting by Christy Santhosh in Bengaluru; Editing by Shilpi Majumdar)
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