(Reuters) -Novavax Inc on Tuesday introduced plans to chop 25% of its workforce and unveiled promising information for its COVID-influenza mixture vaccine and two different pictures, elevating hopes of a restoration for the cash-strapped biotech.
Shares of Novavax jumped practically 9% earlier than the bell as the corporate additionally launched its 2023 income forecast after earlier flagging vital uncertainty round its future.
It now sees whole annual income between $1.4 billion and $1.6 billion, in contrast with market estimates of $831.6 million, in response to 5 analysts polled by Refinitiv.
Novavax’s coronavirus vaccine is its lone marketed product after 35 years in enterprise and the corporate is now hoping that its price controls and a profitable trial for its COVID/flu mixture vaccine candidate will assist it keep afloat.
Knowledge from a mid-stage trial in adults aged 50 to 80 years confirmed that the mix shot produced an immune response corresponding to its protein-based COVID vaccine and already accredited influenza pictures.
World regulators anticipate COVID vaccination campaigns to be performed annually, just like annual flu inoculations.
All three of Novavax’s vaccine candidates – the COVID/flu mixture shot, a standalone flu shot and a better dose of its COVID shot – have been all protected and well-tolerated within the research, the corporate stated.
The layoffs, a part of Novavax’s ongoing cost-reduction measures, would translate to about 498 jobs out of the 1,992 full-time workers it had as of Feb. 21 in response to the corporate’s newest regulatory filings.
The biotech expects the cost-cut plans to assist cut back its annual analysis and industrial bills by 20% to 25% from final yr.
The corporate’s money and equivalents fell to $637 million on the finish of the quarter from $1.3 billion as of Dec. 31.
Novavax additionally posted a first-quarter web lack of $3.41 per share, in contrast with estimates of $3.46.
(Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Enhancing by Devika Syamnath)