Shares of Novavax (NVAX) surged over 17% as of writing after the company lifted its full-year adjusted revenue outlook after beating Wall Street expectations for Q2 revenue. For the full year, the company raised its 2025 adjusted revenue forecast to between $1 billion and $1.05 billion, from $975 million to $1.03 billion earlier.
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Novavax is a biotechnology company specializing in the development of next-generation vaccines for infectious diseases.
Insights from Novavax’s Q2 Results
In the second quarter, Novavax posted revenue of $239 million, well above the analysts’ average estimate of $147.96 million. The revenue was boosted by a $175 million milestone payment from French pharmaceutical company Sanofi (SNY). This was followed by the U.S. approval of its COVID-19 vaccine, Nuvaxovid, in May. Meanwhile, net income for the quarter dropped to $106.51 million, down from $162.38 million in the same period last year.
The company is now concentrating on bringing its vaccine candidates to market via strategic partnerships. Consequently, it granted the rights to its only commercial product, Nuvaxovid, to Sanofi in a deal worth up to $1.2 billion.
Additionally, Novavax announced it will carry out the FDA-requested post-marketing study for Nuvaxovid in 2025 and 2026, with projected costs ranging from $70 million to $90 million. The company expects Sanofi to cover roughly 70% of the expenses, while it will fund the remainder.
For context, Nuvaxovid is Novavax’s protein-based COVID-19 vaccine. It offers an alternative to mRNA vaccines, using traditional vaccine technology. However, it has struggled to gain ground in the U.S. due to manufacturing setbacks and regulatory delays.
Is Novavax a Good Stock to Buy?
According to TipRanks’ consensus, NVAX stock has a Hold consensus rating based on one Buy, two Holds, and two Sells assigned in the last three months. At $9.80, the average Novavax stock price target implies a 23% upside potential.
It is important to note here that these ratings could change following today’s earnings report.
