Novavax first quarter net loss decreases to $7.5 million

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."