Novavax, Inc. (NASDAQ:NVAX) Still Reacting To Failed Phase-3 Trials

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Novavax, Inc. (NASDAQ:NVAX) has been taking a hard line against its executives and top management, following a failed RSV vaccine trial, for elderly patients, at the end of last year. The company is reported to have eliminated cash bonuses for all employees, canceled the annual salary increases and has even revised its stock option plan. The CEO of NVAX, Stanely Erck, alone received a $1 million cut, in annual compensation.

The news of the failed vaccine trial has adversely affected the company’s stock as well, which has been trading below the $1 mark, for the last 1-month. Although Novavax failed to achieve the desired results, from its study, the management did claim that it has made partial progress, during the phase-3 RSV vaccine trials, for infants. This was made possible through maternal immunization. Moreover, NVAX has also partially met goals, associated with its flu vaccine, while is also developing vaccines for other emerging diseases.

As of December 31, 2016, Novavax noted that it has over approximately 18-months of cash in hand. It is expected that with the recent cuts, the company would not face any significant financial hurdles, for the rest of this year, as it works to complete its drug development programs. Nonetheless, a more clear picture of NVAX’s financial position would emerge next week, on May 8, 2017, after the company releases its financial results for the 1Q2017. The results would be unveiled following the close of the financial markets, with a conference call scheduled for 4:30 pm Eastern Time, on the same day.

Earlier in February, the CEO claimed that their company was still leading the race for the development of an RSV vaccine. It was noted that Novavax has opened a new phase-2 clinical trial to begin retesting the failed drug. Results from this study are expected during the 3Q2017.

Novavax, Inc. (NASDAQ:NVAX) lost 3.49% of its share value, during the May 3 trading session, to close at $0.78 per share, after having a trade volume of 6.4 million.

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