Novavax Inc

Novavax's partners have received approvals for the XFG-adapted Nuvaxovid vaccine for the 2026-2027 vaccination season in the U.S., European Union, and Japan, positioning the company to earn royalties on net sales in these markets. The approvals, announced August 28, 2026, cover the protein-based, non-mRNA vaccine, which has demonstrated a favorable tolerability profile in Sanofi's Phase 4 COMPARE study. Novavax's largest partner, Sanofi, will lead commercial activities in most major markets, including an expanded U.S. campaign and launches in Germany, Canada, and other international markets from 2026 onward. Takeda, which commercializes Nuvaxovid in Japan, saw the vaccine become the second-most used COVID-19 vaccine there in the 2025-2026 season, with delivery volumes and site numbers increasing significantly year over year. Under the collaboration and license agreements, Novavax is eligible for ongoing royalties and annual milestones tied to regulatory approvals, without carrying its own commercial infrastructure.

Biotech stocks reached their highest level since the height of the pandemic after Moderna and Merck announced that a late-stage trial testing their messenger RNA-based cancer therapy met its main goals. Healthcare became the best-performing sector in the S&P 500, with the State Street SPDR S&P Biotech ETF adding more than 4% to reach its highest level since February 2021. The individualized neoantigen therapy intismeran autogene, combined with Merck's Keytruda, improved recurrence-free survival with a statistically significant and clinically meaningful effect in the Phase 3 INTerpath-001 trial. Moderna shares more than doubled, Merck added over 12%, and rival vaccine makers BioNTech and Novavax also gained sharply. Gene editing companies including Prime Medicine, Intellia, CRISPR, Editas Medicine, and Beam Therapeutics were notable gainers, while AI-related biotechs Absci and Recursion Pharmaceuticals rallied after Anthropic selected Twist Bioscience as an independent evaluator.

Novavax reported second-quarter 2026 revenue of US$56.7 million and a net loss of US$53.39 million, beating analyst expectations for both revenue and earnings despite sharp year-on-year declines. The company highlighted progress on partnerships with Sanofi and Pfizer, while also filing an US$82.47 million employee stock offering shelf registration. The results underscore Novavax's reliance on milestone and royalty income from its Matrix M adjuvant and partnered vaccine portfolio as standalone sales remain weak.

Moderna reported first-quarter revenues of $389 million, a 260% year-on-year increase that exceeded analyst expectations by 55.8%, making it the fastest-growing company among the 11 therapeutics stocks tracked. The group as a whole beat consensus revenue estimates by 14.5%, with shares up an average of 9.8% since reporting. Novavax posted revenues of $139.5 million, down 79.1% year-on-year but still beating estimates by 84.5%, the largest beat in the group. United Therapeutics was the weakest performer, with revenues of $781.5 million missing estimates by 1.9%, while Amgen reported $8.62 billion in revenue, up 5.8% and beating estimates by 1.4%.

Among 11 therapeutics stocks tracked, first-quarter revenues beat analysts' consensus estimates by 14.5% on average. Moderna reported revenues of $389 million, up 260% year on year and exceeding expectations by 55.8%, making it the best performer in the group. United Therapeutics posted the weakest results with revenues of $781.5 million, down 1.6% year on year and missing estimates by 1.9%. Gilead Sciences reported revenues of $6.96 billion, up 4.4% year on year and beating expectations by 1.5%, but its full-year EPS guidance missed significantly. Novavax recorded the biggest analyst estimate beat with revenues of $139.5 million, down 79.1% year on year but surpassing expectations by 84.5%, while Myriad Genetics reported revenues of $200.4 million, up 2.3% year on year and missing estimates by 1%.