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Novavax, the vaccine manufacturer, reported Q4 revenue and earnings below Wall Street estimates on Wednesday, emphasizing its ongoing efforts to cut costs and remain financially stable. Despite a decline in demand for its Covid vaccine and other virus-related products worldwide, the company managed to narrow losses compared to the same quarter last year.

Here are Novavax’s Q4 results compared to Wall Street expectations, based on an LSEG analyst survey:

Loss per share: $1.44 (actual) vs. expected loss of 45 cents
Revenue: $291.3 million (actual) vs. expected $322 million

The company recorded a net loss of $178.4 million, or $1.44 per share, for the quarter, an improvement from the $182.2 million loss, or $2.28 per share, in the same quarter the previous year. Novavax’s Q4 sales were $291.3 million, down from $357.4 million in the corresponding period in the previous year.

Novavax CEO John Jacobs explained that some revenue had shifted from 2023 to 2024 due to the timing of advance purchase agreements for its Covid shot, clarifying it as a timing element rather than lost sales.

Looking ahead, Novavax anticipates full-year 2024 revenue between $800 million and $1 billion. This projection includes expected revenue from dose delivery schedules and commercial market product sales. Analysts surveyed by LSEG, however, expect 2024 revenue to be around $969.6 million.

For Q1 2024, Novavax forecasts revenue of $100 million, reflecting the conclusion of the current Covid vaccination season, a decrease from the previously expected $300 million.

The company reiterated its commitment to cost-cutting and plans to reduce combined research, development, selling, general, and administrative expenses to a range of $700 million to $800 million in 2024. Novavax had already reduced these expenses to $1.21 billion last year, down from $1.69 billion in 2022. Operating expenses in 2023 were cut by $1.1 billion (41%) compared to 2022, and the workforce was reduced by 30% compared to Q1 2023.

These financial results follow concerns raised by Novavax about its financial stability a year ago, with shares falling more than 50% in the previous year. However, the stock received a significant boost last week when the company resolved a dispute with Gavi, a global vaccine organization, regarding a canceled Covid vaccine purchase agreement. Novavax may pay $300 to $400 million, depending on Gavi’s future vaccine orders over the next five years.

Biogen reported a decline in both revenue and profit for the fourth quarter, attributing the decrease to charges associated with discontinuing its controversial Alzheimer’s drug, Aduhelm, and a slump in sales within its major drug category, multiple sclerosis therapies.

For the fourth quarter, Biogen posted sales of $2.39 billion, reflecting a 6% decrease from the same period a year ago. Net income for the quarter was $249.7 billion, or $1.71 per share, down from $550.4 billion, or $3.79 per share, in the corresponding period last year. Adjusting for one-time items, the company reported $2.95 per share.

The negative impact of 35 cents per share on fourth-quarter earnings, both adjusted and unadjusted, was attributed to previously disclosed costs associated with withdrawing Aduhelm, a drug that stirred controversy during its approval and rollout in the U.S.

In an effort to counterbalance declining revenue from multiple sclerosis therapies, Biogen is implementing cost-cutting measures and placing expectations on alternative Alzheimer’s drugs, particularly its closely monitored treatment, Leqembi, along with other recently launched products.

Here’s a summary of Biogen’s fourth-quarter performance compared to Wall Street expectations:

Earnings per share: $2.95 adjusted vs. $3.18 expected
Revenue: $2.39 billion vs. $2.47 billion expected

Biogen also provided full-year 2024 guidance, anticipating adjusted earnings between $15 to $16 per share, slightly below the analysts’ expected full-year earnings guidance of $15.65 per share.

Multiple sclerosis drug sales took an 8% hit in the fourth quarter, amounting to $1.17 billion, largely due to increased competition from more affordable generics. Tecfidera, once a blockbuster drug, experienced a 17.8% revenue decline to $244.3 million.

Biogen’s rare disease drugs, however, saw a 3% increase in sales to $471.8 million, with Spinraza, a medication for spinal muscular atrophy, recording $412.6 million in sales.

Despite a slower-than-expected adoption of Leqembi, with around 2,000 patients currently using it, Biogen remains optimistic about its long-term potential and is exploring commercial plans to expand its reach beyond the initial target of 10,000 patients by March 2024.

Investors are also keeping an eye on newly launched drugs, including Skyclarys, which generated $56 million in fourth-quarter revenue. Additionally, Biogen’s partnership with Sage Therapeutics resulted in the FDA-approved Zurzuvae for postpartum depression, contributing approximately $2 million in fourth-quarter sales.

Tag: sales

Biogen experiences a decline in revenue and profit due to expenses related to Aduhelm and a decrease in sales for multiple sclerosis therapies

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