Novavax Reports First Quarter 2011 Financial Results
ROCKVILLE, Md., May 9, 2011 /PRNewswire/ — Novavax, Inc. (Nasdaq: NVAX) today announced its financial results for the first quarter ended March 31, 2011.
The company reported a net loss of $7.5 million, or $0.07 per share, for the first quarter of 2011, compared to a net loss of $10.3 million, or $0.10 per share, for the first quarter of 2010. The primary reason for the decreased loss during the quarter was due to lower research and development spending to support clinical trials of the company’s seasonal and pandemic influenza vaccine candidates. Research and development expenses for the first quarter of 2011 decreased by $3.6 million to $5.4 million as compared to $9.0 million in the same period in 2010. General and administrative expenses for the first quarter of 2011 increased by $0.3 million to $2.8 million as compared to $2.5 million in the same period in 2010.
As of March 31, 2011, the company had $23.9 million in cash and cash equivalents and short-term investments compared to $31.7 million as of December 31, 2010.
Key Highlights during the First Quarter of 2011:
- Launched a Phase I study of its novel vaccine against respiratory syncytial virus (RSV);
- Presented final results of its H1N1 influenza vaccine clinical trial in Mexico at the World Health Organization conference on pandemic influenza vaccines in Geneva;
- Licensed its recombinant VLP influenza vaccine technology to LG Life Sciences for development in South Korea and other countries; and
- Received a contract valued at up to $179 million from the U.S. Department of Health and Human Services’ Office of Biomedical Advanced Research and Development Authority (BARDA) to develop and manufacture advanced recombinant virus-like-particle (VLP)-based vaccines to prevent seasonal and pandemic influenza.
“The first quarter was not only a productive period for our scientific and clinical team, but also a remarkable turning point in our company’s history,” said Stanley C. Erck, President and Chief Executive Officer of Novavax. “The award of the BARDA contract validates and accelerates our plans to develop novel vaccines to prevent seasonal and pandemic influenza, while our agreement with LG Life Sciences advances our efforts to work with pharmaceutical partners worldwide to commercialize our technology. As a result of these achievements and the continued progress of our clinical programs, we are now in a much stronger financial and strategic position to pursue the development and launch of VLP-based vaccines.”
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 August 6, 2011. To access the replay of the conference call, dial 1 (800) 642-1687 (domestic) or 1 (706) 645-9291 (international) and enter pass code 63923693.
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, 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 March 31, --------- 2011 2010 ---- ---- (unaudited) Revenue $834 $110 ---- ---- Operating expenses: Research and development 5,414 9,029 General and administrative 2,850 2,535 ----- ----- Total operating expenses 8,264 11,564 ----- ------ Loss from operations (7,430) (11,454) Interest income (expense), net 44 42 Change in fair value of warrant liability (67) 1,069 --- ----- Net loss $(7,453) $(10,343) ======= ======== Basic and diluted net loss per share $(0.07) $(0.10) ====== ====== Basic and diluted weighted average number of common shares outstanding 111,188 100,188 ======= =======
SELECTED BALANCE SHEET DATA (in thousands)
March 31, December 31, --------- ------------ 2011 2010 ---- ---- (unaudited) Cash and cash equivalents $8,358 $8,061 Short-term investments 15,565 23,615 Total current assets 28,976 33,337 Working capital 17,850 23,071 Total assets 70,136 74,844 Total notes payable 380 400 Total stockholders' equity 53,529 59,050
SOURCE Novavax, Inc.