Novavax, Inc. Q1 FY2026 earnings call

Key managerial messages include three strategic pillars: partnering technology, capital-efficient R&D innovation, and a lean operating model. Progress in partnerships with Pfizer, Sanofi, and others, including signing new MTAs for MatrixM. Prioritization of C. diff vaccine candidate to clinic, with positive preclinical data. R&D work on MatrixM adjuvant and other assets like RSV and VZV.

For the first quarter of 2026, total revenue was $140 million, a 79% decrease compared to the same period in 2025. Supply sales were $33 million, a 139% increase year-over-year, driven by higher demand for MatrixM adjuvant to partners and COVID-19 supply sales to Sanofi. Licensing royalties and other revenues were $97 million, a 116% increase on a broad set of partner activities.

Reiterates full-year 2026 revenue framework of adjusted total revenues between $230 million and $270 million. Non-GAAP R&D and SG&A expense guidance for 2026 is $310 million to $340 million, and for 2027 is $225 million at midpoint. Anticipates funding operations into 2028 without new cash flow from upfronts, milestones, or royalties but expects future cash flow from partners.

Forward-looking statements subject to risks and uncertainties like macro and regulatory environment, clinical trial timing, etc. Risks detailed in Form 10-K and 10-Q filed with SEC.

Q: Pete Stavropoulos asked about proportion of experimentation at Novavax vs partners and confidence in C. diff mucosal immunity.

A: Experimentation via partners. Confidence in C. diff mucosal immunity from preclinical data on IgA and gut histopathology.

Q: Roger Song asked about commercial side and Pfizer PCV.

A: Can't speak for partners but shared Matrix data. Anticipate flattish market, Sanofi's methodical market building.

Q: Jeff Meacham asked about MTA to license conversion and Sanofi tech transfer.

A: Conversion depends on preclinical results, can take 4-6 months. $75 million tech transfer milestone expected as Sanofi prepares for next season.

Q: Mayank Mamtani asked about MTA to license cycle time and oncology.

A: Cycle time depends on partner, oncology has potential with MatrixM.

Q: Tom Schroeder asked about Sanofi trigger and deal structure.

A: Sanofi trigger is combination of development and sales milestones. Pfizer deal has $30 million upfront, Sanofi's is different.

Q: Alex Stranahan asked about prioritizing C. diff over RSV/Shingles and combination market.

A: Prioritized C. diff due to unmet need and market opportunity. Combination market for COVID-flu has potential.

Q: Chris LoBianco asked about CDIF vaccine IMD filing and commercial opportunity.

A: Conducting IND-enabling study, will engage FDA. Commercial opportunity for C. diff is $1.5 to $2.5 billion