Novavax reports net loss of $9.4M for second-quarter 2010

Novavax, Inc. (Nasdaq: NVAX) today announced financial results for the second quarter ended June 30, 2010.

Novavax reported a net loss of $9.4 million, or $0.09 per share, for the second quarter of 2010 compared to a net loss of $8.5 million, or $0.10 per share, for the second quarter of 2009.  For the six months ended June 30, 2010, the net loss was $20.8 million, or $0.21 per share, compared to a net loss of $16.9 million, or $0.22 per share, for the same period in 2009.  The primary reason for the increased loss for the second quarter of 2010 as compared to the same period in 2009 was higher research and development spending to support the company's clinical trials related to its H1N1 and seasonal influenza vaccine candidates, as well as increased general and administrative expenses relating to employee costs.  Research and development expenses for the second quarter of 2010 were $6.3 million as compared to $5.3 million in the same period in 2009.  General and administrative expenses were $3.1 million for the second quarter of 2010 as compared to $2.6 million in the same period in 2009.

As of June 30, 2010, the company had $26.8 million in cash, cash equivalents and short-term investments compared to $43.0 million as of December 31, 2009.  

"Our financial results reflect the continued investment in Novavax's vaccine candidates and prudent management of our financial and human resources," said Dr. Rahul Singhvi, President and CEO of Novavax.  "In addition to advancing our clinical programs, we are contending for a potentially significant vaccine development contract with the U.S. government, we have hired outstanding new executives to guide our clinical, pre-clinical and discovery programs, and we have fortified our patent portfolio."  

Recent Accomplishments

Novavax recently reported the following corporate developments:

• Receipt of notification from HHS/BARDA that a potential influenza vaccine development contract is in the "competitive range";
• Achievement of positive results from trial of trivalent seasonal influenza vaccine in older adults;
• Recruitment of new Chief Medical and Chief Scientific Officers and appointment of new Head of Process and Manufacturing Operations and Head of Analytical and Quality Operations;
• Continued R&D progress in discovery of new targets to broaden vaccine pipeline;
• Appointment of Dr. James Young, an accomplished and distinguished member of the biotech industry, to the Board of Directors;
• Completion of construction of vaccine production facility in India by joint-venture company, CPL Biologicals; and
• Receipt of key technology patent covering production of VLP vaccines from multiple strains of seasonal and pandemic influenza viruses.