on Tuesday, February 28, 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.
“If we execute on our operating plan, we’ll be in a very strong position not only at the end of this year, but going into next year,” Novavax’s new chief executive John Jacobs, who joined the company in late January, said in an interview. Novavax had $1.33 billion of cash on hand at the end of 2022. “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. As the company worked to develop the shot, its shares traded as high as $330, a more than $20-billion market value. They have since lost more than 97% of their value, trading at around $9.30 a share.that the company intends to collect on. He said the company was in ongoing discussions with those governments to collect on those deals through 2024.