Novavax Just Dropped a Bombshell on Investors: Even Management Is Questioning Its Future
Novavax (NASDAQ: NVAX) faces an uncertain future ahead as the need for COVID-19 vaccines diminishes. And that means it becomes a risky stock to own with no other approved products to rely on for consistent, long-term revenue growth. Its pipeline isn't bare (it does have a flu vaccine in phase 3 trials), but the big concern is that the company isn't generating enough in cash and profits. The situation is so bad that even management issued a warning on its latest quarterly earnings report.
Last month, Novavax released its year-end results. For 2022, the company reported just under $2 billion in revenue, up from $1.1 billion in the previous year. Product sales from its vaccine totaled $1.6 billion and made up the bulk of the top line, versus in 2021 where grant revenue accounted for most of revenue and product sales were nil.
Nonetheless, despite the impressive growth, Novavax still incurred a net loss of $657.9 million for the year -- less than the $1.7 billion loss it reported in 2021. Reporting a loss even amid such strong growth is certainly concerning as it suggests that Novavax would need even more revenue to break even.
Source Fool.com
