Novavax raises 2026 revenue outlook to $275M as Sanofi deal advances

Novavax reported Q2 revenue of $57 million, down 76% from a year earlier, as the biotech's COVID vaccine business transitioned to partner Sanofi.

"We're encouraged by the momentum we're seeing across our business as we continue to advance our strategy," John C. Jacobs, President and CEO of Novavax, said.

Product sales rose 76% to $19 million on higher Matrix-M adjuvant demand and sales to license partners. Licensing, royalties and other revenue fell 83% to $38 million, reflecting the absence of the $175 million milestone earned in Q2 2025 for the Nuvaxovid U.S. Biologics License Application approval. Net loss was $53 million, compared with net income of $107 million a year earlier.

The company raised its full-year 2026 adjusted revenue framework to $235 million to $275 million, from $230 million to $270 million. Sanofi confirmed it is in advanced discussions with regulators on Phase 3 COVID-19-Influenza Combination trial timing, which would trigger a $125 million milestone payment to Novavax upon trial initiation in the U.S. or European Union.

Sanofi remains the centerpiece of Novavax's strategy. Manufacturing technology transfer for Nuvaxovid is expected to complete in mid-2027, triggering a $75 million milestone. Sanofi is expanding commercial reach of the COVID vaccine in the U.S., U.K., Germany and Canada from 2026 onward, with Novavax eligible for royalties in the high teens to low twenties as a percentage of global net sales.

Sanofi also received Fast Track designation from the FDA for its H5 pandemic influenza vaccine candidate using Matrix-M. Multiple partner-led experiments with the adjuvant are underway across infectious disease and oncology targets, supporting future licensing opportunities. The company's January 2026 non-exclusive deal with Pfizer included a $30 million upfront payment, with up to $500 million in potential milestones plus royalties.

Novavax advanced its C. difficile vaccine candidate into pre-IND interactions with the FDA and initiated GMP manufacturing, supporting potential clinical entry as early as 2027.

The company guided Q3 2026 revenue of $277 million to $287 million. Cash stood at $724 million as of June 30, 2026, compared with $751 million at year-end 2025.

R&D expenses fell to $71 million from $79 million, while SG&A dropped 39% to $27 million as the company eliminated commercial infrastructure following the Sanofi transition. Non-GAAP R&D expenses, net of partner reimbursement, were $48 million, down 34% year over year.

The guidance raise and Sanofi milestone trajectory suggest management expects the partnership model to deliver value as the company pivots from direct COVID vaccine sales to a licensing-first approach. Investors will watch for the initiation of the Sanofi Phase 3 combination trial, which would unlock the next $125 million milestone.

This article is for informational purposes only and does not constitute investment advice.