After too much exaggerationIt turns out that vaccine maker Novavax’s long-awaited COVID vaccine product hit the market too late.
In its second-quarter earnings on Monday, Novavax sales announcement just $186 million for the quarter, well below analyst expectations of $1.02 billion, according to FactSet. The Maryland-based company also halved its revenue forecast and now expects revenue for 2022 to fall between $2 billion and $2.3 billion, instead of $4 billion to $5 billion it predicted last year. the begin of the year. The company lost $510 million this quarter, compared with a loss of $352 million this time a year ago. Shares of the vaccine maker fell more than 30% in after-hours trading.
Novavax CEO Stanley Erck blames the company’s poor sales on the current overdosage of vaccines, prompting governments to delay or suspend orders. Even COVAX, the international initiative to bring a COVID vaccine to developing countries, has more vaccines than is currently needed. Erck said to The Wall Street Journal that COVAX dropped an order for 350 million doses of Novavax due to oversupply from other manufacturers.
Going to the market late
In July 2020, Novavax get 1.6 billion dollars from the US government as part of Operation Warp Speed, the Trump administration’s initiative to fund the development of a COVID vaccine. In return, Novavax promised to produce 100 million doses of the COVID vaccine. At the time, Novavax had yet to bring the product to market, unlike other Warp Speed recipients like Johnson & Johnson.
Novavax eventually developed a two-dose COVID vaccine and was secured by the Food and Drug Administration, but it did so months after its rivals due to delay in production and adjustment knobs. Indonesia was the first government to approve the Novavax vaccine on November 1, 2021, followed by India, the European Union, Japan and Australia. The US FDA finally approved the Novavax vaccine on July 19.
Despite the long road to market, Novavax expressed hope that there is still demand for its vaccine. The company felt that their shot could act as a possible booster shotbuild protection against new Omicron variant. (The FDA has yet to approve Novavax injection as a booster; only unvaccinated Americans can get the Novavax vaccine as of now.)
Public health experts say Novavax’s more traditional technology can convince some vaccine skeptics, wary of the mRNA technology used in Pfizer and Moderna’s injections, to eventually get vaccinated. Novavax even developed a cult follow number of vaccines waiting to be administered.
No predictions for Novavax. “I believe we are late to the market, and that vaccination in the United States is driven by what is available and shown to be effective, the mRNA vaccine,” he said. Erck said.
To date, only 7,300 Novavax injections have been administered in the US, according to government data. (More than 357 million doses of Pfizer-Biontech have been administered in the US)
Global excess supply
Novavax is not the only manufacturer experiencing vaccine oversupply. Moderna said earlier this month that lower demand from COVAX Pull down its second-quarter earnings. In April, Johnson & Johnson pull its guide for COVID vaccine sales, blame vaccine procrastination in developing countries.
The vaccine oversupply is a sharp change from the situation a year ago, when public health officials complained about a shortage vaccine dose, criticize richer countries to stockpile vaccines for booster campaigns rather than sharing excess doses with poorer countries.
COVAX says it has enough dose to immunize 70% of the world’s population – a goal set by the World Health Organization – and the problem now is distribution, rather than supply.
As of August 9, 64% of the world have received at least two doses of the vaccine. The majority of the world’s unvaccinated population lives in sub-Saharan Africa and South Asia.
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