Novavax raises doubts about ability to remain in business, shares fall

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COVID-19 vaccine maker Novavax Inc on Tuesday raised doubts about its ability to remain in business and announced plans to slash spending as it works to prepare for a fall vaccination campaign, and its shares plunged more than 25%.

Novavax's shares closed at $9.26 on Tuesday and fell to $6.90 in extended trading after reporting on its financial situation.

"We don't know what the strain selection is yet from FDA. We don't know what global health authorities may want from a regulatory standpoint on how the new vaccine needs to look," Jacobs said. "The sooner we know that, the more clarity we have on our path forward." Jacobs did not give a target for how deep spending or job cuts would be. Novavax has more than 1,500 employees, according to its website.Novavax is looking at all options that properly value its technology, pipeline and manufacturing capabilities on three continents, from partnerships to licensing deals to "different types of deals that could be much more significant," the CEO said.

 

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