Novavax, Inc. (NASDAQ: NVAX) reported third-quarter financial results after markets closed on Wednesday. The company said that it had a net loss of $0.24 per share and $3.2 million in revenue, versus consensus estimates from Thomson Reuters that called for a net loss of $0.26 per share and $4.02 million in revenue. The same period from last year had a net loss of $0.12 per share and $6.53 billion in revenue.
In this report, the company presented a restructuring plan designed to: prioritize development activities to achieve clinical data in 2017, reduce cash burn, and maintain operational core competencies.
The restructuring includes an immediate reduction in workforce of roughly 30%. Novavax expects to incur one-time restructuring costs in the range of $3 million to $4 million, including severance expenses, in the fourth quarter of 2016. As a result of the restructuring, Novavax estimates a reduction in cash burn of $70 million to $100 million in 2017 relative to 2016.
On the books, cash, cash equivalents, and marketable securities totaled $300.3 million at the end of the quarter, versus $230.7 million at the end of 2015.
Stanley C. Erck, President and CEO of Novavax, commented:
We have identified a clear path forward that we expect will provide us with important clinical data throughout 2017 and protect liquidity. We have the balance sheet to execute this plan. We have resized our organization consistent with this plan and look forward to reporting data from these programs in 2017. We continue to have great confidence in our platform technology, our RSV F Vaccine and the significant commercial opportunity for an RSV vaccine for infants via maternal immunization.
Shares of Novavax closed Wednesday up 17% at $1.70, with a consensus analyst price target of $5.02 and a 52-week trading range of $1.16 to $9.23. Following the release of the earnings report, the stock was initially flat in the after-hours trading session.