Novavax, Inc. · NASDAQ:NVAX
Novavax — Q4 2023 Earnings Presentation
24 slides from Novavax's earnings presentation, Feb 28, 2024
Slide 1: Fourth quarter & full year 2023 financial results & operational highlights
Fourth quarter & full year 2023 financial results & operational highlights Nasdaq: NVAX | February 28th, 2024 © 2024 NOVAVAX. All rights reserved. 1
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “pro
Slide 3: Q4 and FY 2023 Earnings call Agenda
Q4 and FY 2023 Earnings call Agenda Erika Schultz Welcome Senior Director, Investor Relations John C. Jacobs Introduction President and Chief Executive Officer John Trizzino Commercial Updates President and Chief Operating Officer Filip Dubovsky, MD Research and Development President, Research and D
Slide 4: Progress from 2023 create strong foundation for 2024+
Progress from 2023 create strong foundation for 2024+ 1. Delivered non-MRNA COVID-19 vaccine option to U.S. and globally • Achieved $1 billion in revenue for FY 2023 2023 Progress on our three 2. Created a more lean and focused organization priorities • Significantly reduced liabilities and operatin
Slide 5: 2024 Near-term priorities
2024 Near-term priorities Priority #1 Priority #2 Priority #3 Deliver an updated Independently Continue evolution of product for the 2024- launch Phase 3 trial Novavax, further 2025jdsfm vaccination of our COVID- reducing operating season Influenza- expenses Combination Vaccine © 2024 NOVAVAX. All r
Slide 6: Commercial Updates
Commercial SECTION Updates © 2024 NOVAVAX. All rights reserved. 6
Slide 7: 2023 Commercial performance & 2024 execution plan
2023 Commercial performance & 2024 execution plan 2023 • FY 2023 product sales of $531 million, including $251 million in Q4 2023 Commercial • Over 90% in APA sales from Europe, Australia and New Zealand Performance • Remaining ~10% from product sales to U.S., Canada, Singapore, Korea and Taiwan • E
Slide 8: Setting the stage for a stronger U.S. commercial performance in 2024+
Setting the stage for a stronger U.S. commercial performance in 2024+ 2023-2024 Vaccination Season 2024-2025 Vaccination Season Goals Product Presentation 5-dose vial Pre-filled syringe FDA Authorization EUA BLA anticipated Status Timing of Product October Targeting September 2024 Availability Not o
Slide 9: COVID-19 commercial execution in rest of world in 2024+
COVID-19 commercial execution in rest of world in 2024+ Europe APAC Canada • Delivering single-dose • Delivering on existing APAs for • Securing NACI recommendation presentation the coming seasons on-par with mRNAs • Focusing on key countries • Focusing on key countries • Driving awareness of our dr
Slide 10: Opportunity through commercial transformation to perform in the 2024+ vaccination season
Opportunity through commercial transformation to perform in the 2024+ vaccination season and beyond Coordinating workflows Focusing on across CMC, operational regulatory, and execution commercial Key jdsfm Company Transformations Executing on Preparing for retail channels commercial in the U.S., pro
Slide 11: Research and Development
Research and SECTION Development © 2024 NOVAVAX. All rights reserved. 11
Slide 12: Research & development overview
Research & development overview 2023-2024 • Clinical study re-confirmed strain change approach for updated XBB.1.5 vaccine COVID-19 • Displayed strong neutralizing responses to JN.1, most common circulating variant Data • CDC real world evidence study published suggests protection against JN.1 2024-
Slide 13: Pseudovirus Neutralization GMT
Study 313: 2023-2024 strain change study for XBB.1.5 variant Study achieved co-primary immunologic endpoints supporting XBB.1.5 strain change XBB.1.5 vaccine induced robust XBB.1.5 and JN.1 neutralization responses Local and systemic reactogenicity favorable when given as ≥4 dose 7.0x* 100% 100.0% 9
Slide 14: Early season vaccine effectiveness available from CDC
Early season vaccine effectiveness available from CDC CDC data support that XBB.1.5 vaccines provide protection from symptomatic infection • Adjusted effectiveness for XBB.1.5-containing vaccines determined to be VE=54% (46-60%) • Vaccination provided protection against XBB- related lineages as well
Slide 15: Strain selection for 2024-2025 season
Strain selection for 2024-2025 season Vaccination with XBB.1.5 induces robust JN.1 responses in previously vaccinated individuals JN.1 is currently the most common circulating variant Significant antigenic distance exists between XBB.1.5 and JN.1; updating vaccine to JN.1 may protect against future
Slide 16: COVID-Influenza-Combination vaccine development on track
COVID-Influenza-Combination vaccine development on track Data requirement for FDA accelerated approval pathway confirmed Phase 3 planned for 2H 2024 • Immunologic non-inferiority study against CIC Phase 2 Data 10,000 35% 24% 35% 6% -14% 17% authorized age-recommended trivalent influenza Adjusted MN
Slide 17: Financial Results
SECTION Financial Results © 2024 NOVAVAX. All rights reserved. 17
Slide 18: Key financial themes
Key financial themes FY 2023 Financial Results Operating Expenses Cash & APAs • Total Revenue: $984 million • FY 2023 – Reduced total operating • Combined Cash & A/R of $881 o Product sales primarily driven expenses by $1.1 billion or 41%, as million (12/31/2023) by APA deliveries compared to 2022 o
Slide 19: Q4 and full year 2023 financial results
Q4 and full year 2023 financial results ($ in millions, except per share amounts) Q4 2023 Q4 2022 FY 2023 FY 2022 Product sales $ 251 $ 288 $ 531 $ 1,555 Grants 38 70 427 383 Royalties and other 2 0 25 44 Total revenue 291 357 984 1,982 Cost of sales 155 182 344 903 Research and development 165 258
Slide 20: R&D and SG&A expense trends & 2024 guidance
R&D and SG&A expense trends & 2024 guidance Creating a more lean and agile Combined Annual R&D and SG&A Expense organization $1.7B • Reduced workforce by 30% compared to ~$1B reduction the first quarter of 2023 Midpoint compared to FY 2022 $1.2B • Reduced FY 2023 R&D and SG&A by over $500 million co
Slide 21: 2023 Liability management
2023 Liability management $825 million decrease to current Current Liabilities liabilities 2023 • Supports financial health of company with improved current liability profile $2.5B • GAVI settlement provides for equitable resolution and spreads any remaining liabilities over five years $1.6B Current
Slide 22: Full year 2024 financial guidance
Full year 2024 financial guidance Full Year 2024 Guidance $ in millions (as of February 28, 2024) Total Revenue1,2 $800 - $1,000 Combined R&D and SG&A $700 - $800 First Quarter 2024 Total Revenue is expected to be approximately $100 million. Total potential contract value for APAs outstanding as of
Slide 23: Closing Remarks
Closing Remarks © 2024 NOVAVAX. All rights reserved. 23
Slide 24: Q&A
Q&A © 2024 NOVAVAX. All rights reserved. 24