NVAX Q2 Earnings & Sales Beat Estimates, '26 Sales Outlook Raised

Shares of Novavax have increased 14% so far this year compared with the industry’s 4% growth.

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NVAX's Revenue Mix Shifts Toward Partners

As the company’s partner, Sanofi SNY, has assumed commercial responsibility for marketing its COVID-19 vaccine Nuvaxovid, it did not record any direct product sales. Novavax recorded supply sales worth $19 million, up 47% year over year, supported by higher demand for the Matrix-M adjuvant from partners as well as COVID-19 supply to its license partners.

Licensing, royalties and other revenues fell 83% to $37.8 million, almost entirely generated from Sanofi. The prior-year quarter benefited from a $175 million milestone payment from SNY and $27 million received from Takeda.

Novavax Cuts Costs as Operating Model Gets Leaner

Research and development (R&D) expenses declined 11% year over year to $70.7 million. This figure does not include the $22.6 million of R&D reimbursement from Sanofi.

Selling, general and administrative (SG&A) expenses fell 39% to $26.7 million, primarily due to the transition of lead commercial activities to Sanofi and the elimination of Novavax’s commercial infrastructure.

As of June 30, 2026, Novavax had $724 million in cash and cash equivalents compared with $795 million in the previous quarter.

NVAX Improves 2026 Outlook

With Sanofi leading commercialization in key COVID-19 markets, NVAX continues to emphasize an adjusted revenue framework rather than total revenue guidance. For 2026, the company raised its adjusted total revenue outlook to $235-$275 million from $230-$270 million. The framework excludes Sanofi supply sales, royalties and milestones.

NVAX lowered its 2026 combined R&D and SG&A expense guidance to $370-$410 million from $380-$420 million. Expected R&D reimbursements from Sanofi were revised to $60-$70 million from $70-$80 million.

The company reiterated that adjusted combined R&D and SG&A expenses, net of partner reimbursements, are expected in the $150-$200 million range in 2028.

NVAX Sees Sanofi Milestones Ahead

Sanofi is in advanced discussions with regulators regarding the timing of a phase III study on its COVID-19-influenza combination vaccine. Initiation of the study in the United States or the European Union would trigger a $125 million milestone payment to Novavax.

The Nuvaxovid manufacturing technology transfer to Sanofi is expected to be completed in mid-2027, triggering another $75 million milestone. Management expects that payment to extend the company's cash runway from 2028 into 2029.

Novavax Advances Matrix-M and C. Diff Programs

The company emphasized that four of the top 10 pharmaceutical companies now have licensing agreements or material transfer agreements involving Matrix-M. This includes a non-exclusive agreement signed with Pfizer PFE earlier this year. Multiple partner-led experiments are underway across infectious disease and oncology, including a recent oncology MTA with a leading global pharmaceutical company.

The company also advanced its multivalent Clostridium difficile colitis (C. Diff.) vaccine candidate into pre-IND interactions with the FDA and initiated GMP manufacturing. The program remains on track for potential clinical entry as early as 2027, while the next tranche of Matrix-M data from evaluations with commercial vaccines is expected by early 2027.

NVAX’s Zacks Rank

Novavax currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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