Updated version 1 - Novavax raises 2026 revenue forecast due to returns from licensing agreements

Stock information was added in the second paragraph.

Sriparna Roy

Reuters, November 5 - Vaccine manufacturer Novavax (NVAX.O) on Thursday raised its annual revenue forecast to above Wall Street expectations, mainly based on payments related to its licensing agreements.

The company's shares rose more than 3% in pre-market trading to around $11.

The company has been relying on licensing agreements (link) and partnerships related to its protein vaccine platform and Matrix-M adjuvant, a compound that boosts the body’s immune response to vaccines.

According to data compiled by London Stock Exchange Group (LSEG), Novavax now expects adjusted income in 2026 to be between $385 million and $415 million, up from its prior forecast of $235 million to $275 million, and above the analyst mean estimate of $380.29 million.

This loss-making company is betting on a licensing agreement signed with the French pharmaceutical company Sanofi (SASY.PA)—a deal worth at least $1.2 billion—with the aim of turning profitable before 2028.

“We plan to introduce new partners, which is the core of our business model. So not only are we open to it, but we’ll proactively seek and drive such collaborations,” Novavax CEO John Jacobs said in an interview.

Jacobs told Reuters that the company is conducting experiments to evaluate the effect of adding its Matrix-M adjuvant to existing vaccines, after already assessing more than 30 approved vaccines worldwide.

Sanofi plans late-stage US clinical trials for its flu-COVID combination vaccine in 2027, using Novavax's COVID vaccine Nuvaxovid. Once the vaccine is launched in the US, Novavax will be eligible to receive a $225 million milestone payment.

https://www.reuters.com/graphics/NOVAVAX-RESULTS/NOVAVAX-RESULTS/lgpdbyelypo/chart.png

The US midterm election victory for the Democrats has boosted expectations that vaccine policy will stabilize after a period of uncertainty.

“I think it’s too early to say specifically what will happen… but I do believe that in the long run, this is a positive sign for vaccine makers,” Jacobs said.

Novavax is also exploring vaccines targeting bacterial and fungal infections, as well as cancer.

The company reported a quarterly net loss of $31 million, compared to a net loss of $202 million in the same period last year.

(To facilitate non-native English speakers, Reuters has automated the translation of its reports into several other languages. As automated translations may contain errors or lack necessary context, Reuters makes no guarantees regarding the accuracy of translated texts and provides automation solely for reader convenience. Reuters accepts no responsibility for any harm or loss arising from the use of automated translation features.)