By Sriparna Roy
Nov 5 (Reuters) – Vaccine maker Novavax raised its annual revenue forecast above Wall Street expectations on Thursday, banking on payments related to its licensing deals.
The company has relied on licensing deals and partnerships tied to its protein-based vaccine platform and its Matrix-M adjuvant — a compound that boosts the body’s immune response to vaccines.
Novavax now expects 2026 adjusted revenue between $385 million and $415 million, higher than $235 million to $275 million previously and analysts’ average estimate of $380.29 million, according to data compiled by LSEG.
The loss-making company is betting on a licensing agreement with French drugmaker Sanofi, worth at least $1.2 billion, to reach profitability by 2028.
“We intend to bring new partners forward and it is core to our business model. So not only are we open to it, but we proactively try to facilitate and seek that,” Novavax CEO John Jacobs said in an interview.
The company is aiming to build a library of data to identify where its technology can have the greatest impact, expand the use of its Matrix-M platform, and generate evidence to support potential partners’ vaccine programs.
“We view that library as a strategic asset, and as the evidence grows, we believe so too does the potential for new and expanded partnerships,” said Bob Walker, head of research and development at Novavax in a post-earnings call.
Sanofi plans a late-stage US trial of its influenza-COVID-19 combination vaccine, which uses Novavax’s COVID-19 vaccine Nuvaxovid, in 2027. Novavax is eligible for a milestone payment of $225 million upon US commercial launch.
The Democrats’ sweep in the US midterm elections has lifted hopes of stability in vaccine policy after a period of uncertainty.
“I think it’s too early to tell in the immediacy what may exactly happen there … I do think that could bode well over time for vaccine manufacturers,” Jacobs said.
Novavax posted a quarterly net loss of $31 million, narrowing from $202 million a year ago.
(Reporting by Sriparna Roy in Bengaluru; Editing by Sahal Muhammed)
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