Novavax (NASDAQ:NVAX) executives told investors the company made “significant progress” in 2025 executing a strategy centered on partnering its Matrix-M adjuvant technology and advancing a smaller, earlier-stage internal pipeline, while continuing to reduce operating expenses and stabilize the balance sheet.
Strategy shift emphasizes partnering and a leaner operating model
President and CEO John Jacobs said Novavax has moved from a “vertically integrated global commercial organization with a singular focus on COVID” to a company focused on “partnering and R&D,” supported by a lean operating model. Jacobs highlighted the company’s January agreement with Pfizer for Matrix-M, which allows Pfizer to utilize the adjuvant in two disease areas, with one already identified.
Partnership activity: Pfizer deal, Sanofi milestones, and multiple MTAs
Chief Strategy Officer Elaine O’Hara said the company is focused on “driving immediate value” from its platform through partnerships. She detailed the Pfizer license agreement, which included a $30 million upfront payment and the potential for up to $500 million in development and sales milestones across two disease areas. O’Hara said the structure includes $70 million in development milestones and up to $180 million in sales milestones for each disease area, plus future royalties for two decades.
O’Hara also said Novavax has signed new and expanded existing material transfer agreements (MTAs) with “a variety of pharmaceutical companies” evaluating Matrix-M. She noted a new MTA signed in Q4 with a large pharma company, an expansion in February of an existing MTA with a major global pharmaceutical company to explore an additional field, and a new MTA signed “just this week” with an oncology company. Company executives did not disclose the total number of MTAs in place, emphasizing that timelines for MTAs to convert into formal partnerships depend on partners’ development plans.
On the Sanofi collaboration, O’Hara said Novavax achieved “all $225 million in eligible milestones” in 2025 and expanded the agreement to include Matrix-M in Sanofi’s pandemic flu candidate program, which she said has received BARDA funding. She pointed to Sanofi’s public updates describing positive Phase 1/2 results from two flu-COVID combination programs shared in December.
Jacobs said Novavax has earned more than $800 million in non-dilutive capital over the last 18 months from existing partnerships, including Pfizer and Sanofi. He also cited Takeda’s performance in Japan, where Takeda delivered “over 12% market share” for Nuvaxovid, and said more than 30 million doses of the R21/Matrix-M malaria vaccine marketed by Serum Institute have been distributed.
- Sanofi milestones and potential future economics: Jacobs said Novavax is eligible for a $125 million milestone when Sanofi initiates a Phase 3 study for a flu-COVID combination using Sanofi flu products and Novavax’s COVID vaccine, and up to $200 million in launch and sales milestones plus “mid-single-digit” royalties for each new Sanofi vaccine using Matrix-M.
- Facility-related agreements: O’Hara said Novavax signed agreements with AstraZeneca to transfer a U.S.-based facility and sell certain equipment, netting $60 million in cash and creating potential future cash savings of up to $230 million, and sold its Czech Republic manufacturing site to Novo Nordisk for $200 million.
R&D: early-stage pipeline and Matrix platform development
Head of R&D Dr. Ruxandra Draghia said Novavax is advancing internal early-stage programs targeting C. difficile, shingles, and an RSV “triple combination,” with the intent to advance at least one asset into the clinic “as early as 2027.” She described the programs as moving at different paces and said the company is generating preclinical results across all of them, though it plans to be cautious in public disclosure for competitive reasons.
Using C. difficile as an example, Draghia said the company’s Matrix-M adjuvanted candidate uses a multivalent antigen approach and that, in early work including mucosal immunity assessment and challenge studies, the candidate outperformed a comparator focused on two toxins alone. She noted the company’s approach was informed by hypotheses about why prior candidates may have fallen short, including focusing on toxin neutralization rather than preventing colonization, potentially insufficient mucosal immunity, and limited toxin coverage.
On the adjuvant platform, Draghia said Novavax is exploring potential new Matrix-based adjuvants with differentiated properties and cited early research suggesting modifications could drive specific immune responses such as robust CD8-positive T-cell activation. She also said Matrix-M has shown a favorable reactogenicity and tolerability profile in clinical data and broad utility across vaccine platforms.
Financial results: 2025 revenue growth, lower expenses, and cash runway into 2028
CFO Jim Kelly reported total 2025 revenue of $1.1 billion, a 65% increase year-over-year, noting results included $625 million that was “primarily non-cash revenue recognition” tied to resolutions of Nuvaxovid advance purchase agreements (APAs) with Canada and New Zealand announced in early 2025. For Q4 2025, total revenue was $147 million, up 67% year-over-year.
Kelly said Novavax posted positive income for both full-year and Q4 2025 and reduced combined R&D and SG&A expenses on a non-GAAP basis net of partner reimbursement by 53% for the full year and 42% in Q4. Novavax ended 2025 with $857 million in cash and accounts receivable.
He also said the company added $80 million of non-dilutive cash in early 2026, including the $30 million Pfizer upfront payment and a $50 million initial draw from a new $330 million credit facility with MidCap Financial. Based on year-end cash and receivables plus the additional $80 million, Kelly said Novavax believes it can fund operations “into 2028” without assuming new cash inflows, while still anticipating significant partner cash flows over time.
2026 outlook: revenue framework and multi-year expense targets
For 2026, Kelly provided an adjusted total revenue framework of $230 million to $270 million, comprised of:
- $35 million to $45 million of Nuvaxovid product sales under existing orders to Israel and Germany
- $40 million to $50 million of adjusted supply sales to license partners (primarily Matrix-M)
- $155 million to $175 million in adjusted licensing, royalties, and other revenue, including $70 million to $80 million of Sanofi R&D reimbursement; $50 million to $60 million from other partner revenue (Takeda, Serum Institute, and Pfizer, including the Pfizer upfront received in early 2026); and $35 million of non-cash amortization related to prior Sanofi payments
Kelly said the company’s framework excludes potential milestones, including a $125 million milestone tied to initiation of a Sanofi Phase 3 flu-COVID combination study. He added Novavax expects to earn a $75 million Sanofi technology transfer milestone but is excluding it from the 2026 framework because Sanofi requested completion of some tech transfer activities at a new manufacturing site, and Novavax is evaluating potential timing impacts. Executives said they do not expect the change to affect cash runway or vaccine supplies.
On expenses, Kelly said Novavax is lowering non-GAAP combined R&D and SG&A midpoint guidance to $325 million for 2026 and $225 million for 2027, and for the first time provided 2028 guidance of $200 million or below. He said 2026 spending will be front-end weighted due to manufacturing support for the fall season and R&D activities to support Sanofi, including a post-marketing commitment.
In Q&A, executives reiterated expectations that 2026-2027 will be the first “full cycle” season where Sanofi sells Nuvaxovid globally, including completing retail contracting and initiating direct-to-consumer advertising later in the year. Management also acknowledged uncertainty in the U.S. macro and regulatory environment for vaccines, but said it expects a pathway forward.
About Novavax (NASDAQ:NVAX)
Novavax, Inc is a clinical-stage biotechnology company headquartered in Gaithersburg, Maryland, that specializes in the discovery, development and commercialization of next-generation vaccines to prevent serious infectious diseases. Founded in 1987, the company has built a platform based on recombinant nanoparticle technology and its proprietary Matrix-M™ adjuvant to enhance immune responses.
The company’s lead product is NVX-CoV2373, a protein-based vaccine designed to elicit a robust immune response against the SARS-CoV-2 virus.
