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- **Strategic Transformation**: Novavax transitions to a diversified pipeline, reducing costs and pursuing partnerships for 2028 non-GAAP profitability.
- **Financial Performance**: Q3 2025 revenue $70M, driven by Sanofi milestones. 2026 R&D/SG&A target $450M (net of reimbursements).
- **Pipeline Progress**: BARDA grant for Sanofi's pandemic flu vaccine; CIC Phase III potential in 2026. Shingles vaccine shows superior tolerability.
- **Risk Factors**: Dependency on partner execution for profitability; regulatory delays in CIC program.

**【CEO Summary Section】**
- Novavax has transformed into a lean, agile organization, transitioning from a single-product focus to a diversified pipeline. Key achievements include a $1 billion reduction in liabilities and $1.1 billion in nondilutive cash flow through partnerships.
- Strategic priorities: optimizing partnerships (e.g., Sanofi, Takeda), advancing R&D (C. diff, shingles, RSV), and reducing costs. 2028 non-GAAP profitability target contingent on partner execution.
- Q3 2025 highlights: $70 million revenue, $225 million in Sanofi milestones, and $25 million from Takeda. R&D pipeline includes Matrix-M in oncology and C. diff vaccines.

**【CFO Financial Commentary】**
- Q3 2025: $70 million revenue (down 18% YoY), $130 million R&D/SG&A expenses (down 18% YoY). Royalties and R&D reimbursements drive $57 million in licensing revenue.
- 2026 guidance: $520 million R&D/SG&A (net of partner reimbursements), narrowing to $450 million midpoint. 2027 target: $250 million net spend. $126 million noncash charges in Q3 for site consolidation and debt refinancing.
- BARDA grant for Sanofi's pandemic flu vaccine with Matrix-M; potential Phase III for CIC in 2026.

**【Q&A Highlights】**
- **Sanofi Collaboration**: Positive Phase I/II data for COVID-flu combo; 2026 Phase III possible. Novavax eligible for royalties and milestones. 2025 COVID sales $23M, 2026 expected to grow as Sanofi leads U.S. commercialization.
- **Matrix-M in Oncology**: Early-stage exploration shows promise; potential for combination vaccines. Shingles vaccine tolerability data superior to competitors; Phase III pending partner feedback.
- **Financial Milestones**: $75M manufacturing tech transfer milestone in Q4 2026. 2026 supply sales driven by R21 malaria vaccine (25M doses distributed).

Novavax, Inc. (NVAX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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