Maryland-based vaccine maker Novavax announced this week that it will be reducing its workforce by 25%, in an effort to “scale to the endemic COVID opportunity.”
The restructuring changes will also include a 2023 R&D and selling, general and administrative expense reduction, which is expected to be 20 to 25% of that in 2022.
Despite global restructuring changes, Novavax says it remains focused on delivering a competitive COVID vaccine that’s updated with public health recommendations for the fall of 2023. The company is also seeking an expanded label for Nuvaxovid, “to enable broader uptake in the long-term commercial market.”
As for this year’s first-quarter financial results, the company reported a net loss of $294 million, compared to a net income of $203 million in the same period in 2022, and cash equivalents of $637 million, a little more than half of the $1.3 billion reported in the previous quarter.
Facing a tough financial landscape, Novavax recently named a new CEO and president. John C. Jacobs succeeded Stanley Erck, who had been at the helm of the company since 2011 and led Novavax through the development of its COVID vaccine — the company's first marketed product.
Jacobs came to Novavax from Harmony Biosciences — a Pennsylvania-based drugmaker with a focus on rare neurological disorders — where he has served as president, CEO and board member since June 2018.
