Why Novavax, Inc. (NASDAQ:NVAX) Is A Stock To Watch For?

1202

Novavax, Inc. (NASDAQ:NVAX) revenue in Q1 2017 jumped 35% to $5.7 million, as against $4.2 million for the equivalent period in 2016, mainly due to increased revenue posted under the BMGF grant pertaining to ongoing Prepare clinical study. Net Loss came at $43.9 million in Q1 2017 against a net loss of $77.3 million, for Q1 2016.

The highlights

R&D expenses dropped 45% to $37.7 million in Q1 2017, as against to $69 million for the equivalent period 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 costs. G&A expenses dropped 16% to $8.9 million in Q1 2017, compared to $10.5 million for the equivalent period in 2016. Novavax reported that the drop was primarily a result of lower professional fees for pre-commercialization plans.

Interest income net for Q1 2017 was ($3.0) million versus ($1.9) million for the equivalent period in 2016. As of the close of March 2017, Novavax recorded cash/cash equivalents of $211.2 million against $235.5 million as of the close of December 2016. Net cash utilized in operating activities for Q1 2017 was $38.6 million versus $69.8 million for equivalent period in 2016. The drop in cash usage was mainly due to lower costs pertaining to RSV F Vaccine and reduced employee-related costs.

Novavax is in the course of getting regulatory approvals for its imminent products. Therefore, any positive report with approvals, result of underway studies, could be a trigger for stock performance. Again, for medium to longer term, planned commercialization and release of current and future products would be important considering the investments undertaken in infrastructure development and R&D during the recent past.

Provided high investments recorded pertaining to the marketing offerings in different markets, cash drainage in its underway R&D activities and uncertainties linked to the outcome of recent studies, overall profitability and return indicators could remain subdued during the preliminary gestation period.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.