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.