Novavax, Inc. · NASDAQ:NVAX
Novavax — Q2 2023 Earnings Presentation
24 slides from Novavax's earnings presentation, Aug 8, 2023
Slide 1: Second quarter 2023 financial results & operational highlights
Second quarter 2023 financial results & operational highlights Nasdaq: NVAX | August 8th, 2023 © 2023 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: Non-GAAP financial measures
Non-GAAP financial measures The Company has used a non-GAAP financial measure in this presentation, which is R&D and SG&A expense, as adjusted to exclude one-time restructuring charges including a restructuring charge related to employee severance and benefit costs, consolidation of facilities and i
Slide 4: Q2 2023 Earnings call Agenda
Q2 2023 Earnings call Agenda Welcome Erika Schultz Senior Director, Investor Relations John C. Jacobs Introduction President and Chief Executive Officer Commercial Updates John Trizzino EVP, Chief Commercial Officer and Chief Business Officer COVID Clinical Filip Dubovsky, MD Development & Pipeline
Slide 5: Recent progress across near-term priorities
Recent progress across near-term priorities Priority #1 Priority #2 Priority #3 Deliver an updated Reduce our rate of Leverage our product for the spend, manage our technology platform, jdsfm 2023 fall upcoming cash flow, and our capabilities, and vaccination season evolve our scale & our portfolio
Slide 6: Commercial Updates
1 Commercial SECTION Updates © 2023 NOVAVAX. All rights reserved. 6
Slide 7: U.S. COVID market outlook for 2023 fall vaccination season
U.S. COVID market outlook for 2023 fall vaccination season Transition underway to traditional, commercial vaccine market Experts offer consensus on XBB U.S. government anticipating COVID is expected to remain vaccine as best protection September vaccinations a major public health concern “FDA has ad
Slide 8: U.S. vaccine distribution partners
U.S. vaccine distribution partners: Network in place and prepared to receive Novavax COVID vaccine Novavax – Distribution Center Specialty HCP Distribution Network U.S. Retail Pharmacy Channel Public Health U.S. Health System Channel • National & Regional Retail • CDC • Group Purchasing Organization
Slide 9: Global commercial activities for 2023 fall vaccination season and beyond
Global commercial activities for 2023 fall vaccination season and beyond Ongoing delivery of doses to key markets under existing APAs (EU, Canada, Asia-Pacific) Collaborating with customers to prepare for transition to tender and private markets and establish foundation for long-term supply Advancin
Slide 10: COVID Clinical Development & Pipeline
2 COVID Clinical SECTION Development & Pipeline © 2023 NOVAVAX. All rights reserved. 10
Slide 11: COVID clinical development and pipeline updates
COVID clinical development and pipeline updates Study 311 • Study achieved all three co-primary endpoints Part 2 Strain • Evaluated prototype vaccine, monovalent BA.5 vaccine, and bivalent BA.5 vaccine Change • Data supporting strain change regulatory filings for authorization of updated XBB COVID v
Slide 12: 311 Part 2 strain change study achieved co-primary endpoints
311 Part 2 strain change study achieved co-primary endpoints Study is prerequisite for monovalent XBB strain update Randomized adults who had received ≥3 doses of an mRNA vaccine: • Monovalent prototype-strain vaccine (N=250) • Monovalent Omicron BA.5 vaccine (N=250) • Bivalent (prototype-strain+BA.
Slide 13: Study 503: Robust neutralizing responses in children 6-11 years of age
Study 503: Robust neutralizing responses induced for children 6-11 years of age Study achieved licensure enabling immunologic effectiveness endpoint • Population: 3,600 children 6 months to 11 years of age in 3 age cohorts GMT 6-11 years of age: 1,260/1,200 enrollment complete (95% CI) 2-5 years of
Slide 14: Low levels of reactogenicity through 7 days after dose 1 and dose 2
Low levels of reactogenicity through 7 days after dose 1 and dose 2 Majority of children reported no local or systemic symptoms 100% 100% 100.0% 100.0 Dose 1 Local Symptoms Dose 1 Systemic Symptoms 80% 80.0%80% 80.0% 60% 60.0%60% 60.0% 40% 40.0%40% 40.0% 20% 20.0%20% 20.0% 0% 0.0% 0% Nausea/ 0.0% Pa
Slide 15: Clinical pipeline update
Clinical pipeline update COVID-Influenza Combination Stand-alone Influenza Vaccine High-Dose COVID vaccine Combines stand-alone Quadrivalent vaccine High-dose COVID vaccine influenza vaccine and with four influenza for annual vaccination for NVX-CoV2373 in single Hemagglutinin genes older adults for
Slide 16: Financial Results
3 SECTION Financial Results © 2023 NOVAVAX. All rights reserved. 16
Slide 17: Q2 2023 Financial results
Q2 2023 Financial results Q2 Total Revenue Q2 2023 Overview $424M • Total revenue of $424 million o Increased by $239 million & 128% compared to Q2 2022 +128% • Reduction to combined R&D and SG&A expense to $313 million $186M o Decreased by $85 million & 21% compared to Q2 2022 • Reduction to curren
Slide 18: Q2 2023 Financial results
Q2 2023 Financial results ($ in millions, except per share amounts) Q2 2023 Q2 2022 Product sales $ 285 $ 55 Grants 137 108 Royalties & other 2 23 Total revenue 424 186 Cost of sales 56 271 Research & development 219 290 Selling, general & administrative 94 108 Total expenses 369 669 Income (loss) f
Slide 19: August 2023 SK bioscience agreements
August 2023 SK bioscience agreements Agreements evolve our relationship from a CMO arrangement to a strategic business partnership Key Agreement Terms • Extends exclusive commercial rights in South Korea until February 2029 and non-exclusive rights in Thailand and Vietnam until June 2028 and provide
Slide 20: 2023 Liability management
2023 Liability management Over $1 billion in current Current Liabilities liabilities addressed in 2023 • Reduced current liabilities by $323 million in the second quarter of 2023 and by $864 $2.5B million in first half of 2023 • August 2023 SK bioscience agreements $1.9B settle a $195 million manufa
Slide 21: R&D and SG&A expense guidance for 2023-2024
R&D and SG&A expense guidance for 2023-2024 Combined Annual R&D and SG&A Expense Global Restructuring and Targeting a 40% - 50% Cost Reduction Plan $1.7B reduction in 2024 vs. 2022 • Plan announced in May 2023 on track to significantly reduce $1.3B - $1.4B Novavax expenses while retaining the capabi
Slide 22: Full year 2023 financial guidance
Full year 2023 financial guidance Updated Prior $ in millions (as of August 8, 2023) (as of May 9, 2023) Financial Considerations Total Revenue1 $1,300 - $1,500 $1,400 - $1,600 Grant Revenue $340 - $360 $340 - $360 • $100 million of the up to $350 million in cash payments under the June 2023 Canada
Slide 23: Closing Remarks
Closing Remarks © 2023 NOVAVAX. All rights reserved. 23
Slide 24: Q&A
Q&A © 2023 NOVAVAX. All rights reserved. 24