Novavax, Inc. (NASDAQ:NVAX) posted its financial report for the first quarter closed March 31, 2017. The net loss came at $43.9 million versus $77.3 million, for Q1 2016. Revenue in Q1 2017 jumped 35% to $5.7 million from $4.2 million for the comparable period in 2016, mainly due to increased revenue registered under the BMGF grant pertaining to company’s ongoing Prepare clinical study.
Stanley C. Erck, the CEO and President of Novavax, reported that they continued to make substantial progress in the implementation of their two major clinical studies of RSV F vaccine in older adults and for infant through maternal immunization. They look forward to posting vital clinical report from their older adult study in the upcoming 90 days.
Novavax management has been in talks with the U.S. FDA about performing an informational assessment of the Prepare study that would offer an indication of vaccine’s potential efficacy. Based on these talks, they consider they can perform this assessment in late 2017. Moreover, they are recording the continued use and adoption of Matrix-M in numerous partnered and internal programs.
In Q1 2017, R&D expenses came at $37.7 million compared to $69 million for the comparable quarter in 2016. The decline was mainly due to lower costs related with the clinical studies and development measures of RSV F Vaccine and reduced employee-related expenses.
G&A expenses came at $8.9 million in Q1 2017, versus $10.5 million for the comparable period in 2016. The drop was mainly due to reduced professional costs for pre-commercialization activities.
As of close of March 2017, Novavax reported cash/cash equivalents of $211.2 million versus $235.5 million as of close of December 2016. Net cash utilized in operating activities for Q1 2017 was $38.6 million, as against $69.8 million for same quarter in 2016. This drop in cash utilization was mainly due to decreased costs pertaining to their RSV F Vaccine and reduced employee-related costs.