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Novavax (NASDAQ:NVAX) pivots back to profitability after delivering a $666.7 million revenue haul in Q1surpassing estimates by $322.8 millionand lifting its full-year revenue forecast. Consequently, as of 09:47:22, Novavax stock is up $0.675 (+11.34%) in pre-market trading at $6.625 on Thursday.
The COVID-19 vaccine maker swung to a $519 million net income from a $148 million loss a year ago, fuelled by a $603 million one-time gain from terminating two Advance Purchase Agreements and $45 million in licensing and royalty payments from Sanofiup from $4 million last year.
Total expenses plunged roughly 37% year-over-year to $151.4 million, with SG&A costs down about 45% to $48 million as ongoing cost cuts take hold. This sharp topline expansion and dynamic expense control drove Novavax to boost its adjusted full-year revenue guidance to $975 million$1.025 billion, up from $300 million$350 million, while the Street sat near $641.9 million.
Management credited the Nuvaxovid shot's steady uptake in key markets and the lumpy timing of APG terminations for the headline numbers. CFO John Trizzino noted that improved contract terms and disciplined spending underpinned the results, and CEO John Young highlighted renewed execution momentum as the company pivots toward broader vaccine portfolios beyond COVID.
Analysts say the one-off APG benefit clouds underlying demand trends but agree the cost base reduction and recurring royalty revenue from partnerships like Sanofi's should support sustained cash flow improvements.
Why it matters: Novavax's ability to convert non-recurring gains into lasting revenue streamsand to parlay cost discipline into positive earningswill shape investor confidence as the vaccine market matures and competition intensifies.
Investors will watch Q2 sales of Nuvaxovid in emerging markets, progress on next-generation vaccine candidates and margin trajectory when Novavax reports next quarter results in late July.
This article first appeared on GuruFocus.