Earnings Results: Novavax stock sheds a quarter of its value as vaccine maker’s business in ‘substantial doubt’

by | Feb 28, 2023 | Stock Market

Novavax Inc. shares shares sank in the extended session Tuesday after the biotech drug maker posted more than double the loss that analysts expected and reorganized with concerns it may not be in business in a year. “While our current cash flow forecast for the one-year going concern look-forward period estimates that we have sufficient capital available to fund operations, this forecast is subject to significant uncertainty, including as it relates to 2023 revenue, funding from the U.S. government, and pending arbitration,” Novavax said in a statement.

“Given these uncertainties, substantial doubt exists regarding our ability to continue as a going concern through one year from the date that these financial statements are issued,” the company said. Novavax
shares fell more than 25% after hours, following a 6.8% rise in the regular session to close at $9.26. Shares were trading for less than $7 in the extended session, which would be their lowest prices since March 2020 if they last into a regular session. Novavax reported having $1.34 billion in cash and cash equivalents at the end of 2022. The company reported a fourth-quarter loss of $182.3 million, or $2.28 a share, compared with a loss of $846.3 million, or $11.18 a share, in the year-ago period. Revenue rose to $357.4 million fr …

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