Novavax Q2 2026 Earnings Report

Novavax EPS Results

• Actual EPS: -$0.32
• Consensus EPS: -$0.38
• Beat/Miss: Beat by +$0.06
• One Year Ago EPS: $0.62

Novavax Revenue Results

• Actual Revenue: $56.70 million
• Expected Revenue: $52.51 million
• Beat/Miss: Beat by +$4.19 million
• YoY Revenue Growth: -76.20%

Novavax Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 8:30AM ET

Novavax (NASDAQ:NVAX) is a clinical-stage biotechnology company headquartered in Gaithersburg, Maryland, that specializes in the discovery, development and commercialization of next-generation vaccines to prevent serious infectious diseases. Founded in 1987, the company has built a platform based on recombinant nanoparticle technology and its proprietary Matrix-M™ adjuvant to enhance immune responses.

The company’s lead product is NVX-CoV2373, a protein-based vaccine designed to elicit a robust immune response against the SARS-CoV-2 virus. In addition to its COVID-19 vaccine, Novavax is advancing candidates targeting respiratory syncytial virus (RSV) and seasonal influenza. These programs leverage the same nanoparticle and adjuvant technologies to address ongoing unmet needs in respiratory infectious disease.

Novavax operates globally, with research and development facilities in North America and manufacturing partnerships in Europe, Asia and Africa. Collaborations with organizations such as the Serum Institute of India and SK bioscience support its ability to supply vaccines in diverse markets. This international footprint enables the company to respond rapidly to public health emergencies and to pursue broad distribution of its products.

Under the leadership of President and Chief Executive Officer John C. Jacobs, who joined the company in 2021, Novavax has focused on scaling manufacturing capacity and securing regulatory approvals for its vaccine candidates. The company’s executive team and board include experienced professionals from the vaccine and biopharmaceutical industries, guiding its efforts to expand the global reach of its proprietary vaccine platform.

Novavax Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Sanofi partnership momentum strengthened: Sanofi is in advanced regulatory discussions for a Phase III COVID-19/flu combination vaccine, which could trigger a $125 million milestone, while a manufacturing tech-transfer milestone could add $75 million by mid-2027 and extend Novavax’s cash runway into 2029.
• Positive Sentiment: 2026 financial outlook improved: Novavax raised its adjusted revenue framework to $235 million-$275 million, citing stronger Matrix-M demand and expected Takeda and Serum Institute royalties and milestones, while lowering combined GAAP R&D and SG&A expense guidance by $10 million at the midpoint.
• Positive Sentiment: Matrix-M partnering activity is broadening: Four of the top 10 global pharmaceutical companies now have licensing or material-transfer agreements, covering more than 30 areas of experimentation across infectious disease and oncology. Novavax also signed an oncology-focused MTA with a leading global pharmaceutical company.
• Neutral Sentiment: Pipeline progress remains early-stage: The preventive C. difficile vaccine began GMP manufacturing and pre-IND discussions, with potential clinical entry as early as 2027, while oncology data are encouraging but remain primarily mechanistic or preclinical and partner timelines are uncertain.
• Negative Sentiment: Reported results reflect ongoing losses and potential restructuring charges: Second-quarter revenue fell to $57 million from $239 million a year earlier, largely because 2025 included a $202 million milestone and Takeda amendment benefit; Novavax posted a $53 million net loss and flagged up to a $35 million non-cash fixed-asset write-off in 2027.

Presentation

[Operator]

Thank you for standing by everyone. My name is Jim, and I'll be your conference operator for today. I would like to welcome everyone to the Novavax Second Quarter 2026 Financial Results and Operational Highlights Conference Call. All lines have been placed on mute to prevent any background noise. After today's speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, simply press star and one again. Thank you. It's now my pleasure to turn the floor over to Naina Zaman. You may begin.

[Naina Zaman, Lead Investor Relations Representative at Novavax]

Good morning. Thank you all for joining us today to discuss our second quarter financial results and operational highlights today on August 6th, 2026. A press release announcing our results is available on our website at www.novavax.com, and an audio archive of this conference call will be available on our website later today. Before we begin with prepared remarks, I would like to remind you that this presentation includes forward-looking statements regarding Novavax's current expectations related to, but not limited to, its partnerships, market opportunities, and financial guidance.

[Naina Zaman, Lead Investor Relations Representative at Novavax]

Our actual results may be materially different from such statements as detailed in the presentation. Discussions of non-GAAP figures and reconciliations to GAAP figures are available in our earnings press release, and descriptions of the risks and uncertainties associated with Novavax are included in our SEC filings. Both can be accessed through our website. Joining me today are John Jacobs, our President and CEO; Jim Kelly, our Chief Financial Officer; Elaine O'Hara, Chief Strategy Officer; and Dr. Bob Walker, Head of R&D. I would now like to hand the call over to John.

[John Jacobs, President and CEO at Novavax]

Thanks, Naina. Good morning, everyone. In 2025, we set out to build a different kind of biotechnology company, one powered by partnering our technology, targeted and capital-efficient innovation, and a lean and agile operating model. Our ambition is a Novavax with multiple partners and products using our technology, creating both near and long-term value while potentially having a meaningful impact on millions of lives around the world.

[John Jacobs, President and CEO at Novavax]

Today, the momentum created by executing this new strategy is giving us the potential to have greater impact than ever before. For example, four of the top 10 global pharmaceutical companies now have licensing or material transfer agreements for Matrix-M. One of those companies is Pfizer in a collaboration that could represent up to $500 million in potential development and commercial milestones and significant potential future royalties.

[John Jacobs, President and CEO at Novavax]

In total, our licensed partners and MTA holders collectively have the rights to over 30 areas of experimentation across both infectious disease and oncology. The collective utilization and experimentation with Novavax technology potentially opens the door to a substantial portion of a market projected to reach $100 billion in the 2030s, spanning infectious disease, oncology vaccines, and cancer immunotherapeutics. In the second quarter, we accelerated our momentum, and today we're excited to share several important updates.

[John Jacobs, President and CEO at Novavax]

First, we continue to execute well on our Sanofi partnership with Sanofi's strong and growing commitment to Nuvaxovid and our technology. In fact, Sanofi has confirmed to us their intent to be among the first movers in the combination vaccine market and that they are in advanced discussions with regulators regarding phase III study timing for their program using Nuvaxovid and their own flu vaccines. We're pleased to hear this confirmation, and we are optimistic about the growing potential of our opportunity as partners.

[John Jacobs, President and CEO at Novavax]

Initiation of this trial in either the U.S. will trigger a $125 million milestone payment to Novavax. Additionally, progress continues on the manufacturing tech transfer to Sanofi, which comes with an associated $75 million milestone upon completion and is expected by mid-2027. We believe Sanofi is also well-positioned for this commercial season with Nuvaxovid, supported by an expanded U.S. marketing campaign and launches in additional international markets. We're excited for the potential of this work to help increase awareness of Nuvaxovid and build meaningful market share over time.

[John Jacobs, President and CEO at Novavax]

Taken together, this means we now have line of sight to an additional $200 million in potential near-term milestone payments on top of the more than $1 billion in value we have already realized through a combination of upfront payments, milestones and royalties, and cost savings related to this partnership. Second, we're seeing growing interest in Matrix-M and increasing progress across our broader partnering portfolio. A growing body of scientific evidence is being generated by Novavax, our partners and MTA collaborators in oncology and infectious disease targets, and we're excited about the progress that's being made.

[John Jacobs, President and CEO at Novavax]

Third, our R&D investments are selective and strategic, and they're designed with three goals in mind, to build upon the scientific evidence that makes our technology increasingly compelling to both current and prospective partners, to broaden the utility of our Matrix technology platform, and to create new innovative vaccines that have the potential to stimulate additional partnering opportunities and drive value for Novavax and our stakeholders.

[John Jacobs, President and CEO at Novavax]

Later in the call, Bob will discuss the momentum we're seeing across our R&D portfolio, including the growing body of work supporting Matrix-M's utility in oncology. Finally, we're delivering on our commitment to transform Novavax into a leaner, more capital-efficient company. To date, we've reduced our operating expenses by more than 80%, and we remain on track to achieve an approximately 90% reduction from our peak. Importantly, we didn't just cut. We focused, streamlining our company, while at the same time preserving the capabilities we believe are needed to enable value creation.

[John Jacobs, President and CEO at Novavax]

Taken together, the progress the team and I are sharing today reinforces our belief that the future is bright for Novavax. We continue to successfully execute on and deepen our existing partnerships, to take steps towards initiating new partnerships, to strengthen our technology platform, and to deliver with financial discipline. We remain confident in the opportunities ahead and believe we're well-positioned to create meaningful value for patients and shareholders. I will now turn the call over to Elaine to further discuss the progress we're making across our partnerships and business development activities. Elaine?

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Thanks, John. As discussed, one of the clearest indicators that our strategy is working is the momentum we're seeing across our partnerships. We are focused on two objectives: maximizing value from our existing collaborations while building the next generation of licensing opportunities. Today, I'll provide an update on both. Beginning with Sanofi, COVID-19 continues to present a meaningful public health challenge, particularly among older adults and other high-risk populations where we see the highest need and the highest vaccination rates.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

It remains a significant commercial opportunity as the second-biggest infectious disease market behind influenza. Building on last year's COVID-19 launch in the U.S., Sanofi is preparing a broader commercial effort following Nuvaxovid's first full year of approval. The campaign will be supported by pharmacy activation and direct-to-consumer outreach. Internationally, Sanofi plans to expand availability in additional markets this season, including the United Kingdom, Germany, and Canada.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Results from the phase IV COMPARE study, a large head-to-head evaluation of Nuvaxovid and a next-generation mRNA COVID-19 vaccine, demonstrated Nuvaxovid's favorable tolerability profile. Together, we believe these developments provide healthcare providers and patients with important information to make more informed vaccine choices. Beyond the commercial COVID opportunity, we remain encouraged by the progress of Sanofi's combined COVID-19 influenza vaccine program.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Recent external developments, including the European Commission's approval of the first COVID-19 influenza combination vaccine, reinforce our belief that the regulatory pathway for this category is becoming more clear. As a reminder, Sanofi previously reported positive phase I/II data for its CIC candidate utilizing Nuvaxovid in combination with their flu vaccines. As John said, we are encouraged by Sanofi's recent confirmation that they are in advanced discussions with regulators, and they intend to be one of the first movers in the combination vaccine segment.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

To reiterate, a phase III study initiation in either the U.S. or EU will trigger a $125 million milestone payment to Novavax. Finally, on the Sanofi partnership, Sanofi's BARDA-funded H5 pandemic influenza vaccine candidate, which includes Matrix-M, was recently granted U.S. FDA Fast Track designation. Tremendous progress continues with Sanofi. Beyond Sanofi, we're pleased with the continued execution across our broader portfolio of licensed partnerships.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Work with Pfizer, Takeda, and the Serum Institute continues to progress well and demonstrates the broad applicability of the Matrix-M platform across multiple vaccine programs and of our technology platform more generally across multiple markets. Turning to our Matrix collaboration activity. Today, our existing license partners and MTA holders collectively have the rights to over 30 areas of exploration across both infectious disease and oncology, reflecting the broad applicability of Matrix-M and our technology platform across a diverse range of vaccine programs.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

While it will take time for partners to complete experiments before these efforts potentially progress into full licensing agreement discussions, we're encouraged by the momentum we're seeing. Materials have been delivered, studies are underway, and partner engagement continues to deepen. What stands out most is both the quality and diversity of the organizations evaluating Matrix-M. We are actively collaborating with four of the top 10 pharmaceutical companies through license agreements and/or MTAs.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

We are also seeing growing interest from innovative biotechnology companies, reinforcing the broad appeal of Matrix-M across the industry. One area where we're seeing particularly strong momentum is oncology. During the second quarter, we executed an MTA with a leading global pharmaceutical company who is also a top player in immuno-oncology related to therapeutic cancer vaccine applications, we continue to see interest from additional companies in this area.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

From a partnering perspective, we're encouraged not only by the caliber of these companies, but also at the pace at which therapeutic cancer vaccine programs potentially can generate meaningful data and reach key development milestones. Different to infectious disease vaccines, therapeutic cancer vaccines generally enter clinical testing in patients with active disease, allowing developers to access meaningful data on shorter timelines. Combined with expedited regulatory pathways in areas of high unmet need, we see real potential for these factors to accelerate partnering decisions.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Just as importantly, this is an area of profound unmet need, and we are inspired by the hope that next generation therapeutic cancer vaccines represent for patients and their families. The level of engagement we're seeing reinforces our belief that Matrix has the potential to become a broadly applicable vaccine adjuvant platform. Every new collaboration has the potential to expand scientific evidence supporting the platform, strengthen its value, and create additional opportunities for future partnerships. That's the virtuous cycle that we believe will continue to differentiate Novavax. Now I will pass it over to Bob to discuss the scientific rationale behind these programs in greater detail.

[Bob Walker, Head of Research and Development at Novavax]

Thanks, Elaine. Our R&D strategy is designed around a simple principle. Every investment we make should create future opportunities to facilitate partnership discussions while strengthening the scientific foundation of Matrix-M and our full technology platform. We're increasingly excited about the potential for Matrix in oncology, which we believe represents one of the most compelling long-term opportunities for our adjuvant.

[Bob Walker, Head of Research and Development at Novavax]

Therapeutic cancer vaccines are experiencing renewed momentum as advances in neoantigen discovery, tumor profiling, and antigen design accelerate the field. At the same time, many developers continue to face a common challenge of generating strong, durable cellular immune responses that are critical for effective antitumor activity. We believe that our unique saponin adjuvant Matrix-M has a differentiated tolerability profile and the potential to stimulate robust cellular immune responses for oncology vaccines used alone or with innate immune stimulators such as TLR agonists.

[Bob Walker, Head of Research and Development at Novavax]

A recently published study by Novavax in npj Vaccines, a Nature portfolio journal, demonstrated that our Matrix-M adjuvant supports antigen cross-presentation and subsequent downstream CD8 T cell activation. Achieving strong CD8 T cell activation is considered an important factor for many therapeutic cancer vaccine approaches. Additionally, researchers at Stanford have published their work in Science Advances showing that saponin adjuvants alone or combined with innate immune stimulators such as TLR agonists can further enhance the magnitude, breadth, durability, and quality of immune responses.

[Bob Walker, Head of Research and Development at Novavax]

Put simply, we believe Matrix-M helps the immune system better recognize and respond to disease-related targets. Its ability to engage the innate immune system, activate immune cells within the draining lymph node, enhance antigen presentation, and promote Th1 biased and CD8 positive T cell responses gives it a differentiated mechanism of action that we believe is highly relevant for next-generation cancer vaccines.

[Bob Walker, Head of Research and Development at Novavax]

Our own internal research has continued to generate encouraging immunologic data supporting further evaluation of Matrix-M across multiple oncology settings. In parallel, as Elaine discussed earlier, our oncology collaborations should provide additional data sets generated independently by our partners, further expanding our understanding of the platform. Taken together, we believe the combination of published mechanistic evidence, emerging preclinical data, and partner-generated research provides an increasingly compelling scientific rationale for Matrix-M in oncology.

[Bob Walker, Head of Research and Development at Novavax]

Beyond oncology, we have continued to advance a focused internal pipeline that addresses significant unmet medical needs while strengthening the value of our platform. During the quarter, we made meaningful progress in the development of our differentiated multivalent C. difficile vaccine candidate, which has the potential to cover the vast majority of circulating C. diff clades and ribotypes.

[Bob Walker, Head of Research and Development at Novavax]

This progress includes initiating GMP manufacturing and pre-IND interactions with the FDA, keeping us on track for potential clinical entry as early as 2027. More broadly, as we have shared previously, some of our own internal preclinical studies on the combination of Matrix-M with licensed flu, RSV, and pneumococcal vaccines produced encouraging results that have already helped generate partnership interest.

[Bob Walker, Head of Research and Development at Novavax]

Building on that, we are continuing our comprehensive program to evaluate the potential ability of Matrix-M to enhance performance in a broad array of licensed vaccines in big commercial markets. As we previously shared, our ambition is to generate a library of data in a cost-efficient manner to show the potential of Matrix-M across significant vaccine programs in a methodical manner. We expect to complete the next tranche of this work by early next year.

[Bob Walker, Head of Research and Development at Novavax]

The goal is to stimulate new and additional partner interest in the applicability of Matrix-M in their vaccine portfolios. Importantly, oncology, C. diff, and our clinical and preclinical pipeline exemplify our broader strategy. Every program we advance, whether internally or through our partners, expands the scientific foundation of Matrix-M and our vaccine technology.

[Bob Walker, Head of Research and Development at Novavax]

With the growing partner interest in Matrix-M, we are encouraged by what is today one of the industry's most comprehensive data sets across mechanistic biology, preclinical research, clinical development, and commercial use. That growing body of evidence does more than advance our scientific understanding. It increases confidence in the platform while potentially lowering the barrier for future partners and reinforcing what continues to differentiate Matrix-M and our full technology platform.

[Bob Walker, Head of Research and Development at Novavax]

We believe that this expanding scientific foundation represents a durable competitive advantage, one that becomes stronger with every new study, every new collaboration, and every new application of the platform. As a physician and researcher who has spent most of his career working on vaccine development, I believe we're entering an exciting new chapter. Seeing the potential of our technology in new infectious disease targets and the expansion of Matrix-M into areas with significant unmet needs, such as oncology, represents an opportunity to improve the lives of even more patients and make an even greater impact on public health. We look forward to sharing additional progress over the coming quarters. I'll now turn it over to Jim for the finance update.

[Jim Kelly, CFO at Novavax]

Thank you, Bob. This morning, we announced our financial results for the second quarter of 2026. Details of our results can be found in our press release issued today and in our Form 10-Q filed with the SEC. Let me begin by highlighting several significant updates that we believe demonstrate the progress we're making on our growth strategy.

[Jim Kelly, CFO at Novavax]

Today, we are announcing our expectation to earn a $75 million manufacturing tech transfer milestone payment from Sanofi mid-next year that would extend our current cash runway from 2028 into 2029. We are also encouraged by Sanofi's recent phase III CIC study update discussed earlier and the potential to earn $125 million milestone payment. In addition to our second quarter results, we will be sharing updates on our improved 2026 financial outlook and reiterate our financial performance objectives to drive shareholder value. First, I'll walk us through our revenue performance.

[Jim Kelly, CFO at Novavax]

Our second quarter total revenue of $57 million compares to $239 million in the prior year. When comparing year-over-year results, you will see the prior year second quarter 2025 results include a $202 million benefit from a combination of a BLA approval milestone payment and a Takeda amendment. The $57 million total revenue recorded in the second quarter of 2026 includes product sales of $19 million, an increase of 76% year-over-year, and are driven by demand for our Matrix-M adjuvant by Takeda and Serum Institute. In addition, we recorded Sanofi revenue of $36 million related primarily to R&D cost reimbursements and amortization.

[Jim Kelly, CFO at Novavax]

Turning to our full financial statement results, the second quarter of 2026, we recorded a net loss of $53 million and ended the quarter with $743 million in cash and accounts receivables. When reviewing the year-over-year change to net income and loss, we begin with the impact of the prior year's BLA milestone and Takeda amendment. Our second quarter 2026 results highlight meaningful improvements to other aspects of our financial performance, including product sales and other partner-related revenue categories that increased by $20 million year-over-year, while cost reductions were the primary driver of an additional $24 million improvement.

[Jim Kelly, CFO at Novavax]

We believe these 2026 trends reflect the continued execution of our strategy and financial performance. On the expense front, we continued to reduce our cost structure in the second quarter of 2026 with a 36% decrease to combined R&D and SG&A expenses on a non-GAAP basis. Importantly, we made significant reductions to both R&D and SG&A spend profiles. We believe these improvements to our operating efficiency highlight that we are on track to deliver our full-year expense guidance.

[Jim Kelly, CFO at Novavax]

Today, we are increasing our full-year 2026 revenue framework and expect to achieve adjusted total revenues of between $235 million and $275 million. As a reminder, our non-GAAP adjusted total revenue excludes Sanofi supply sales, royalties, and milestones. This means there may be revenues in 2026 that are additive to our expectations. That said, we believe in 2026, Nuvaxovid royalties will grow significantly as compared to 2025. At midpoint, our full-year 2026 revenue framework for adjusted total revenues is $255 million. This increase of $5 million at midpoint relates to the following updates for 2026. A $5 million increase to adjusted supply sales as we see strong demand for Matrix-M from our commercial partners.

[Jim Kelly, CFO at Novavax]

A $10 million increase to other partner-related revenues as we expect additional royalties and milestones from Takeda and Serum Institute. Finally, a $10 million reduction to partner R&D reimbursements as we deliver efficiently on our partner-related performance obligations. Looking ahead to the second half of 2026, we expect the majority of our remaining revenue to occur in the fourth quarter as driven by the COVID-19 vaccine season.

[Jim Kelly, CFO at Novavax]

Today, we are also improving our full-year 2026 combined GAAP R&D and SG&A expense guidance. At midpoint, we expect to achieve results of $390 million, a $10 million reduction and improvement to our prior guidance. On a non-GAAP basis and net of partner reimbursements, we reiterate that we expect to achieve results of $325 million at midpoint. Today, we are reiterating our three-year combined non-GAAP R&D and SG&A expense guidance.

[Jim Kelly, CFO at Novavax]

Looking forward to 2028, we expect to reduce our non-GAAP R&D and SG&A expenses by over $200 million, reflecting a 50% decrease when compared to 2025. Importantly, in 2026, we are already operating at an approximately $200 million core spend profile when excluding costs tied to completion of partner and APA performance obligations. As these near-term activities are completed, we expect to be in a position to further decrease these costs.

[Jim Kelly, CFO at Novavax]

To reach our 2028 lean and agile operating model target, we anticipate having less than half the head count as compared to the first quarter of 2026 and are exploring an over 50% reduction to our operating footprint via consolidation of buildings and laboratories. This could result in a non-cash fixed asset write-off of up to $35 million in 2027, in addition to our existing expense guidance.

[Jim Kelly, CFO at Novavax]

As a reminder, in 2025, we recorded non-cash write-offs of $98 million to a separate P&L line item called impairment of assets held for sale. For the time being, we suggest analysts and investors use the same P&L line item as part of their forward-looking models until we refine our expectations for both the amount and accounting for these potential non-cash write-offs in 2027. Today, we are reaffirming our key financial objectives that support our intent to drive long-term shareholder value.

[Jim Kelly, CFO at Novavax]

Our strategy is to drive revenue from a diversified set of licensed partners and products to deliver long-term cash flow growth. To enable this strategy, we are making disciplined R&D investments that strengthen the Matrix platform, advance differentiated R&D programs, and generate data to support new partnering opportunities. When Novavax engages with new partners, we expand investments in R&D via partner funding of new vaccine programs.

[Jim Kelly, CFO at Novavax]

Key financial metrics to support our growth strategy include achieve 2028 combined non-GAAP R&D and SG&A expense of $150 million-$200 million. Reach non-GAAP P&L profitability as early as 2028. Pay off pandemic-era APA liabilities by the first quarter of 2029. Maintain at least two years' cash runway. As a reminder, the timing of the Sanofi CIC launch is a primary contributor to our potential non-GAAP profitability. We look forward to sharing additional updates as we improve Novavax's financial performance, cost structure, and strength to deliver shareholder value. With that, I'd like to turn the call back over to John for some closing remarks.

[John Jacobs, President and CEO at Novavax]

Thank you, Jim. In closing, we're excited about the momentum we continue to build across our business. We've transformed Novavax into a leaner, more focused company, strengthening our balance sheet, and continued to execute against our corporate strategy. Matrix-M continues to gain scientific and commercial validation, and we're seeing sustained interest from both existing and prospective partners.

[John Jacobs, President and CEO at Novavax]

At the same time, we're advancing a focused internal pipeline and are excited about the potential of our C. diff vaccine candidate. We believe this reinforces that our future has the potential to be less reliant on any single product, program, or partner as we continue to diversify revenue-generating opportunities. While there is still important work ahead, we believe we have more visibility into our future opportunity than at any point since beginning Novavax's transformation.

[John Jacobs, President and CEO at Novavax]

We're confident that our strategy is sound, and we're accelerating our momentum, positioning the company well to enable meaningful value creation for years to come. Importantly, as we continue to execute, we are creating the potential to have a remarkable impact on public health and a legacy we can all be proud of as employees and contributors to this journey. We would all like to thank our employees for their efforts and our shareholders for their belief in our company. With that, operator, we'd be happy to open the line for questions. Thank you.

[Operator]

Thank you, Mr. Jacobs. A reminder to our phone audience that it is star and one on your telephone keypad if you'd like to ask a question. We will hear first today from the line of Roger Song at Jefferies.

[Analyst at Jefferies]

Hey, team. Congratulations on the progress. This is Nabil on for Roger. Lots of exciting progress in the commercial engine, the partnerships, and the pipeline. I guess maybe two questions. First, as we look at Sanofi entering its first commercial season, curious if you can give any more color on the seasonal supply. Then on Sanofi and the phase III advanced discussions on the combo, what needs to be aligned for that phase III? Then again, if you could just talk about that market opportunity, especially you mentioned international as well. Thank you.

[John Jacobs, President and CEO at Novavax]

Jim, why don't you take the first part of the question on the upcoming season?

[Jim Kelly, CFO at Novavax]

Yep, absolutely. Nabil, thanks for the question. We continue to see the COVID-19 marketplace as just an incredibly significant vaccine marketplace opportunity. A reminder, this is a top 5 global vaccine market. It's been in the $5 billion-$7 billion the last few years. As we look forward, I think that the entrant of our partner, Sanofi, who as you know, is the market leader in the enhanced flu marketplace, flu being the anchor to the respiratory season, we're really looking forward to what they're doing to bring a protein-based option to the marketplace, both in the U.S. and globally.

[Jim Kelly, CFO at Novavax]

Of course, we can't speak for our partner, Sanofi, but we're seeing through really their actions, investing in things like the COMPARE Study we discussed last quarter, where they went head-to-head with mRNA and showed the very favorable profile of Nuvaxovid protein base with respect to adverse events reactogenicity. We're really happy and looking forward to seeing their impact of their commercial direct-to-consumer program they're rolling out this year.

[John Jacobs, President and CEO at Novavax]

Thank you, Jim. Like Jim said, they're leaning in, not away, regarding Sanofi as our partner. Outstanding partnership, positive energy there. In the case of CIC, though we can't speak on behalf of our partners on specifics, actually, we can't have the specifics on their background, on their R&D program and other things. We're technically a competitor in the CIC arena because of our own vaccine asset there. In this case, Sanofi has confirmed with us their intent to be among the first movers in the combination vaccine market arena, and that they are in advanced discussions with regulators regarding phase III study timing for a combination vaccine program.

[John Jacobs, President and CEO at Novavax]

Very encouraging, very exciting, and building upon the news from Moderna yesterday evening on the approval for their flu vaccine. We see that as a positive momentum in the U.S. environment from a regulatory perspective for seasonal infectious disease arena.

[Analyst at Jefferies]

Great. Thank you.

[Operator]

We will take our next question from the line of Paul Kuhn at TD Cowen.

[Paul Kuhn, Analyst at TD Cowen]

Thanks. Congrats on the quarter, guys. Thanks for the question. Paul Kuhn here, on for Chris—

[John Jacobs, President and CEO at Novavax]

Thanks, Paul.

[Paul Kuhn, Analyst at TD Cowen]

LoBianco. I just was wondering if you guys could provide any additional color on your potential clinical trial design for C. diff vaccine in phase I. Primarily, what endpoints are you guys going to be looking at, what do you want to see there before initiating a phase III trial? Just curious if you guys have embedded any potential phase II or III C. diff costs in your 2028 operating expense framework. Thank you.

[John Jacobs, President and CEO at Novavax]

Bob, why don't you take the first part of the question on trial design commentary, Jim, you can talk about runway on costs. Yeah.

[Bob Walker, Head of Research and Development at Novavax]

Sure. For the phase I trial design, we're not really discussing details of that, but I would just say that it's a fairly standard dose escalation, characterizing safety, and demonstrating that safety profile is adequate to take further into advanced development.

[Jim Kelly, CFO at Novavax]

Bob, to that point, as we look at advanced development, which certainly could be as early as 2028, the answer to funding capacity is yes, we have contemplated the ability to keep exciting programs like C. diff moving in our forward-looking guidance.

[John Jacobs, President and CEO at Novavax]

That's exactly, Jim, why we provided a range in that forward-looking guidance on expenses. We're contemplating within that range and to operate the company within the range that's been provided. That's our intention.

[Paul Kuhn, Analyst at TD Cowen]

Great. Thanks, guys.

[Operator]

Next question will come from Pete Stavropoulos at Cantor Fitzgerald.

[Pete Stavropoulos, Analyst at Cantor Fitzgerald]

Good morning, John, Jim, and team. Congrats on the progress, thank you for taking our questions.

[John Jacobs, President and CEO at Novavax]

Thank you.

[Pete Stavropoulos, Analyst at Cantor Fitzgerald]

First question that I have is, this will be a full commercial year for Nuvaxovid under Sanofi control, as you mentioned. How much of the 2026 COVID vaccine uptake assumptions depend on contract wins versus physician patient-driven uptake, including the DTC outreach that was mentioned?

[John Jacobs, President and CEO at Novavax]

Jim, you want to take that one?

[Jim Kelly, CFO at Novavax]

Hey, certainly. Very astute question about the marketplace dynamics. This continues to be a consumer and retail-driven marketplace in the U.S. In particular, we're looking at 85% or more of decision-making or shots coming through the retail market. This is why this direct consumer advertising by Sanofi this year, emphasizing not just exceptional efficacy, but also great tolerability profile, we think is exceptionally important. As we watch the way Sanofi has built their market-leading flu vaccine business, we've witnessed the following. One, they invest in data. It's a long game. They're methodical.

[Jim Kelly, CFO at Novavax]

That's what we're anticipating from them. We saw it in sort of them testing the marketplace last year, investing in the COMPARE data, now rolling out their direct consumer. That's our anticipation. This is a multi-year, long game. We look forward to seeing what they're going to do this fall, importantly, bring a protein-based vaccine to the market in a meaningful way.

[Pete Stavropoulos, Analyst at Cantor Fitzgerald]

All right. Thank you for that. Just one additional question. Sorry, John, were you going to say something?

[John Jacobs, President and CEO at Novavax]

Just to build on that, though the U.S. is the most important market, its primary market, they're also launching in other markets this year, like Canada, Germany, U.K., and it'll be a global footprint over time that continues to expand. Like Jim said, long-term methodical investments. Elaine, you had one additional point to add.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Just more specifically, Pete, they've contracted with all the major retailers in the U.S., we expect to have a robust season as a result of that. Thanks.

[Pete Stavropoulos, Analyst at Cantor Fitzgerald]

Thanks. Just one question, probably for Bob. It has to do with our C. diff vaccine candidate. One of the design attributes you have alluded to is the possibility of a mucosal immunity. Just curious to hear what from the preclinical data sort of gives you confidence that you would be able to develop mucosal immunity, which I assume is IgA response. Are you developing this candidate as an injection? The reason I ask is what gives you confidence, again, that you can generate a robust mucosal response through that route of administration?

[Bob Walker, Head of Research and Development at Novavax]

One of the things we're looking at preclinically, we intend to look at in the clinic, is whether or not the vaccine can induce mucosal immunity. As I think we mentioned on the last earnings call, we do see evidence of that in some of the preclinical models. Preclinical models are limited, as you know. When we see it in our human studies, I think we'll talk about it more, if we see it in human studies.

[Pete Stavropoulos, Analyst at Cantor Fitzgerald]

Thank you for taking our questions, congrats on the quarter.

[Operator]

Our next question will come from Alec Stranahan at Bank of America. Please go ahead.

[Alec Stranahan, Analyst at Bank of America]

Hey, guys. Thanks for taking my questions. Two from me. First, just on the 2026 revenue guidance, is there a point in the fall season where you'll have better line of sight on Sanofi supply sales where you provide concrete guidance here? Will this maybe be easier to do next year after we get a full year of Sanofi commercialization? Second, has strain selection happened for Nuvaxovid yet? What the appropriate variant match will be for this fall, whether that's KP.2 or KP.3 or something else? Thoughts around preparedness to scale manufacturing for this season's strain would be great. Thank you.

[John Jacobs, President and CEO at Novavax]

Jim, maybe you could take the question on guidance.

[Jim Kelly, CFO at Novavax]

Hey, certainly. I would start by reiterating that we are exceptionally excited to have Sanofi as our commercial partner with Nuvaxovid. We're not in a position, however, to guide for them. It's also true that we're not able to speak for them on strain selection. What we can say is, as this year is our final year of offering commercial support directly to Sanofi, they're well-prepared. They're well-prepared to be out there in line with the competitors at the start of the season and do what they do best, right? Bring important vaccines to the marketplace.

[Jim Kelly, CFO at Novavax]

Regarding your question about, hey, in the future, might we guide to Sanofi? We haven't guided to anything beyond 2026 at this time. Importantly, we, I believe, have set a precedent that we're not at this point in a position to speak on their behalf. As they over time begin to guide, of course, I think that's going to be helpful to all investors.

[John Jacobs, President and CEO at Novavax]

Alec, your second question was on strain selection. If I would paraphrase the question or just frame it a little differently, do we have the correct strain and a vaccine that's viable for the season, Bob?

[Bob Walker, Head of Research and Development at Novavax]

Yeah. The vaccine that Sanofi will be distributing in the U.S. and beyond matches the strain selection of the U.S. and other regulators.

[John Jacobs, President and CEO at Novavax]

Yeah, we're on track for delivering doses to Sanofi.

[Alec Stranahan, Analyst at Bank of America]

Very good. Thank you.

[Operator]

We'll take our next question today from Tom Shrader at BTIG.

[Tom Shrader, Analyst at BTIG]

Good morning, everyone. Thanks, and congrats on all the progress. Returning to C. diff., kind of a broader question. Is that a treatment vaccine? Is that a prophylactic vaccine? Can you give us a little sense of, if it's prophylactic, who it would be for? Is there a clear population that's had a lot of infections? Separately on your oncology vaccines, we all know those are hard. Do your partners want Matrix-M as it is for these programs, or are they all asking for licenses to use the components of Matrix-M and kind of experiment? The question is, are you close to the final adjuvant in oncology vaccines, or are you licensing people to do research in adjuvants related to Matrix-M? Thanks.

[John Jacobs, President and CEO at Novavax]

Bob, why don't you take the question on C. diff. first?

[Bob Walker, Head of Research and Development at Novavax]

Yeah. With the C. diff., early days, and I think the general philosophy is that we're looking at preventive vaccines.

[Tom Shrader, Analyst at BTIG]

Okay.

[Bob Walker, Head of Research and Development at Novavax]

We're developing the database as we speak. We'll consider all the various options.

[John Jacobs, President and CEO at Novavax]

On the second question, Tom, regarding Matrix, look, we have reason to believe we're optimistic about what we're seeing early on. Novavax is engaged. We are engaged in internal research and experiments with Matrix in oncology across multiple target types, and we're looking forward to generating additional data. We've seen some early data that encourages us, but we're not ready to share that in the public domain yet. As you can imagine, we use data of that nature and data from some of our earlier partnerships in the past that involved oncology to interest and entice a recent partner who signed up with us through an MTA in a collaboration, who's a top 10 pharma company and a global leader in oncology.

[John Jacobs, President and CEO at Novavax]

They are also in a position to explore Matrix-M across a variety of oncology targets. We look forward to them engaging and then completing that work, to our own work coming to fruition. What we're seeing so far, we're very encouraged by, and we believe that some of the early data we were able to share under NDA, with that collaboration, that partner, and through that collaboration, encouraged them to take a look as well, and they're a leader and an expert in oncology. It's absolutely exciting. We appreciate the energy of your question and wanting to learn more. We look forward in the future to sharing some of what we're learning as we continue to build the library of knowledge and evidence around the potential for Matrix in this arena. Thank you.

[Tom Shrader, Analyst at BTIG]

All right. Thanks for the detail. I appreciate how competitive this all is.

[Operator]

We'll move next to Geoff Meacham at Citi. Please go ahead.

[Nishant Bhushan, Analyst at Citi]

Hey, guys. This is Nishant Bhushan for Geoff. Thank you for taking our question. Going back to the combo vaccine, I know you mentioned Sanofi's intent to pursue, but given the recent leadership change there and the portfolio review, what tangible steps from them give you confidence that the combo vaccine remains a strategic priority? Are there any remaining internal decision points before the phase III trial starts? Thank you.

[John Jacobs, President and CEO at Novavax]

Could you repeat the question, please? We had a little bit of audio difficulty here. Thank you.

[Nishant Bhushan, Analyst at Citi]

Yeah. On the combo vaccine, I know you mentioned Sanofi's intent to pursue the combo vaccine, but there has been recent leadership change over there and the portfolio review. What tangible steps from them gives you confidence that the combo vaccine remains a strategic priority? Are there any remaining internal kind of decision points before the CIC start?

[John Jacobs, President and CEO at Novavax]

Thank you for your question. To paraphrase that then, internal change at Sanofi, new CEO, new head of R&D, promotions, in fact, of the global vaccine head was promoted and got even more responsibility. They're leaning in, not away, as Jim said and as I said. If anything, we're seeing more engagement behind the scenes from Sanofi rather than less, despite the changes. In fact, perhaps even with those changes. We're really encouraged, more so than ever before. By the way, we do not speak on behalf of partners. We are extremely cautious and conservative in what we say about the intentions of those we're working with.

[John Jacobs, President and CEO at Novavax]

A part of our strategy, it may be frustrating at times for investors who'd like to hear more sooner, of course, we can't share many of the things we know that our partners are working on and doing because we're under NDA. When we do make a comment, like we have about Sanofi's commitment about their intention to be one of the first in the CIC combination arena market in the U.S., that they're in late-stage discussions with regulators, those words are signed off on by our partner. They are provided to us by that partner, and we are enabled to then share it with you.

[John Jacobs, President and CEO at Novavax]

Those words are coming from Sanofi themselves. Any further questions about it, you definitely ask them when you circle with them. What we see behind the scenes is leaning in, stronger commitment, a strong understanding of our technology and its capabilities. They're an outstanding partner, and we're excited about the potential of the partnership as we continue to move forward.

[Nishant Bhushan, Analyst at Citi]

Thank you. Then follow-up. Is the combo vaccines, like the phase III trial start in 2026 still the base case? What exactly needs to happen for you to earn the $125 million milestone? Thank you.

[John Jacobs, President and CEO at Novavax]

We don't guide to timing of our partners on studies. Jim, did you want to comment on milestones?

[Jim Kelly, CFO at Novavax]

Well, reiterating we don't guide, however, we agree it's going to be an exceptionally important catalyst for us. In fact, when you think about, I was talking about the size of the global vaccine markets. When you combine COVID-19 plus flu together, think about it. We're talking about two $5 billion-$6 billion marketplaces. You turn this into a top one, top two market, it makes sense to invest. It just does. So we believe that this advancement to phase III, when Sanofi makes that announcement, is a really important unlock of value creation for our company.

[Nishant Bhushan, Analyst at Citi]

Thank you.

[Operator]

We will hear next from the line of Hardik Parikh at JPMorgan.

[Hardik Parikh, Analyst at JPMorgan]

Hey, everybody. Thanks for the question. Just a couple of high-level ones. One is just on the COVID flu combination vaccine. What do you think is the biggest need on the market right now? I know you say you guys are competitors technically with Sanofi in the cake market. Just what level of engagement do you think you may have with Sanofi as they take their combination phase III? Do you expect to play any kind of a role advising them or anything like that? Thank you.

[John Jacobs, President and CEO at Novavax]

Jim, Bob, do you and Elaine want to address the first part of the question?

[Jim Kelly, CFO at Novavax]

I tell you what, I really appreciate the question because what it does is it asks, "Hey, talk about the burden of disease and the significance and the importance of continued vaccination and the vulnerability of certain age groups, in particular the older 65." Something I would point any investor or anyone to is the recent VRBPAC, where manufacturers shared and of course, industry expert shared just the continued burden of disease, especially in that over 65, when it comes to deaths, hospitalizations. As that continues, we think we're seeing broadly continued investment in CIC programs across major vaccine manufacturers for that reason.

[John Jacobs, President and CEO at Novavax]

Yeah. In fact, GSK made commentary about their intentions around a combination vaccine in their recent earnings call. We've seen Moderna get approved in Europe. We just saw the flu approval in the U.S., which bodes in a positive way, we believe, in the U.S. marketplace for seasonal infectious disease arena. Elaine, additional comment?

[Elaine O'Hara, Chief Strategy Officer at Novavax]

The only thing I was going to address, Hardik, is I think the second part of your question. We do not provide guidance to Sanofi on their CIC program. As John had mentioned earlier on in the Q&A session, we have separate entities, and we have our own combination into lens and CIC program, so we do not advise. Thanks for the question.

[Hardik Parikh, Analyst at JPMorgan]

Thank you.

[Operator]

A final reminder to our audience that is star and one if you would like to ask a question. We will hear from Mayank Mamtani at B. Riley Securities.

[Mayank Mamtani, Analyst at B. Riley Securities]

Yes. Good morning, team. Thanks for taking our questions. I appreciate you squeezing us in. On the partnership front, you have had many updates. Maybe just quickly on the mRNA flu label, and the regulatory progress that we've had in the recent months. I was really interested to hear your specific thoughts on implications on how phase III CIC or even a flu program next generation could be designed, and is there an accelerated approval path in a 65+ age group based on a immunogenicity surrogate endpoint? If you could maybe just comment on that.

[Mayank Mamtani, Analyst at B. Riley Securities]

Then on the Pfizer partnership, I know you're contractually restricted to talk about the fields that they're working on, but I was just curious if anything to watch out for coming there, if you could just give some update there. Lastly, on the 30+ fields under evaluation, really curious to hear how maybe quarter-over-quarter or year-over-year some of these evaluation work has progressed, and timelines for moving into a licensing kind of format, how that's kind of progressing, that would be very helpful.

[John Jacobs, President and CEO at Novavax]

All right. Three questions from Mayank. Bob, did you want to take the first one on his question regarding label and flu and any read-through to CIC programs in the U.S. marketplace?

[Bob Walker, Head of Research and Development at Novavax]

Just commenting at a high level, the fact that we've seen this recent activity from the FDA, I think, is encouraging. The flu vaccine plays in the same space where we are in terms of seasonal respiratory virus vaccines. It's encouraging for all of us, right, to see progression in that space. I'll just maybe leave it there.

[John Jacobs, President and CEO at Novavax]

Elaine?

[Elaine O'Hara, Chief Strategy Officer at Novavax]

Thanks, Bob. Thank you. For the second part of the question regarding the Pfizer partnership, we continue to collaborate with Pfizer and uphold our commitments based upon the license agreement that we have with Pfizer. We're very excited about the progress that's being made. Can't speak any further to that, but we continue to support that partnership. The third part of the question was the 30+ fields. Again, that spans both infectious disease and oncology.

[Elaine O'Hara, Chief Strategy Officer at Novavax]

We're again very excited about the progress that's being made across the board with Matrix-M in these experimentations. Each MTA is different. Partners evaluate different indications, they conduct different experiments, and they move with different timelines. Hard to say yet where that will end, but we're very excited about that progress. We don't guide to specific timing as any specific MTA really depends on the partner and how they conduct their experimentation. Thanks for the question.

[John Jacobs, President and CEO at Novavax]

Yep. Regarding oncology, just one other comment that I think back to Tom's question on Matrix-M. Yeah, we found the final version of Matrix-M for oncology. We believe Matrix-M in and of itself as it stands today, has potential in that arena, and we're exploring deeply its potential there. We're also looking at other approaches utilizing Matrix to expand the utility of it, add it to other things in addition, to see if we can broaden the utility both within infectious disease and in oncology. We're turning over every stone. We're encouraged by what we're seeing across that front. We really believe that the core Matrix-M as it stands today, has remarkable potential across a wide array of diseases. Jim, one other comment.

[Jim Kelly, CFO at Novavax]

Hey, Mayank. I tell you what I really like about your question is that what you're highlighting is that beyond the forward-looking catalysts that are in the control of Novavax, for example, entering the clinic with C. diff., some of the work we're doing on oncology to have proof points. We have on a forward-looking near-term basis some really rich partner catalysts that also are critically important to unlocking value here in our company from major players. You're describing Sanofi, you're describing Pfizer, you're describing new emerging deals that can occur. The combination of those two, what we're doing ourselves, plus the catalyst-rich partner activities in the future, are some of the things that we're very excited about here.

[Mayank Mamtani, Analyst at B. Riley Securities]

Actually, since you mentioned applications of Matrix-M, very quickly on the GSK's shingles dementia program, they're launching a big one. I remember you've been working preclinical program on shingles. Maybe just give us an update on that and if that is part of any of these partnership frameworks you're working on. Thanks again.

[Bob Walker, Head of Research and Development at Novavax]

Yeah. We too are intrigued by some of those observations. I'll just, again, indicate that these are observational studies. They're hypothesis-generating, so work remains to be done to really nail down whether or not there's a true causative association there. We, as you know, have a VZV candidate that we're developing still early. We're working towards confirming a lead candidate, and then our intent is to partner that program.

[Mayank Mamtani, Analyst at B. Riley Securities]

Great. Thank you, Team.

[Operator]

That concludes our question-and-answer session, and we do thank all of our participants who signaled today. Mr. Jacobs, I am pleased to turn the floor back to you, sir, for any additional or closing remarks that you have.

[John Jacobs, President and CEO at Novavax]

Just a sincere and deep thank you to all of our employees at Novavax for their contributions, the efforts, and the energy that they put into this every day, and their passion to really help make a difference in the world for global health through our efforts and our energy, and to create a legacy we can all be proud of. A deep thank you to all of our investors, from our largest investor to our smallest. We appreciate each and every one of you, the belief in our technology, and the confidence and patience you show as we continue to execute against what we believe is a robust strategy that has the chance to deliver significant value for all of our stakeholders. Thank you for your attendance today, everyone.

[Operator]

Ladies and gentlemen, this does conclude this Novavax second quarter 2026 financial results and operational highlights conference call. We thank you all for your participation. You may now disconnect your lines, and have a great day.

Participants

Executives

• Naina Zaman, Lead Investor Relations Representative
• John Jacobs, President and CEO
• Elaine O'Hara, Chief Strategy Officer
• Bob Walker, Head of Research and Development
• Jim Kelly, CFO

Analysts

• Analyst at Jefferies
• Paul Kuhn, Analyst at TD Cowen
• Pete Stavropoulos, Analyst at Cantor Fitzgerald
• Alec Stranahan, Analyst at Bank of America
• Tom Shrader, Analyst at BTIG
• Nishant Bhushan, Analyst at Citi
• Hardik Parikh, Analyst at JPMorgan
• Mayank Mamtani, Analyst at B. Riley Securities