The American biotech company continues to cut costs and layoffs. Novaxknown for production coronavirus vaccination, as the pandemic subsides and the demand for vaccines has dropped significantly in recent times. The company announced yesterday that it will cut costs by about 40-50% in 2024 compared to 2022, which means consolidating some manufacturing facilities and infrastructure, as well as reducing the number of employees by 25%. It is recalled that now their number reaches 2000.
This year, in addition to cost containment, the company is looking to produce new vaccines to boost its sales, forecasting sales of $1.6 billion this year based on first-quarter results. The company stated that the combination vaccine which aims to solve both corona virus and the flu builds up a strong immune system against viruses, highlighting that this is showing good results in the second phase of clinical trials. According to a Financial Times report citing a Novavax statement, the biotech company’s first-quarter revenue fell to $81 million from $704 million in the same period last year.
Limited demand led to a loss of $294 million in the first three months of 2023, when the company made a profit of $203 million in the same period last year. However, its financial results fell short of Wall Street analysts’ estimates. Refinitiv research showed that analysts had expected first-quarter revenue to be around $87.6 million.
In 2024, he will cut costs by about 40-50% compared to 2022 and cut staff by 25%.
“Novavax is committed to significantly reducing costs while maintaining the ability to deliver on its operating plans,” the company said in a statement. News of his plans lifted shares 7% before the market opened in New York. However, the stock has fallen 86% over the past year due to concerns about the company’s ability to continue running smoothly. OUR pfizer, V Modern and other companies that have responded to the call to mass-produce products to fight the pandemic in the short term are now seeing a decline in demand as World Health Organization and countries, including the US, are lowering their coronavirus emergency alert.
“Reducing our workforce was a difficult decision, but we believe it was necessary to better align our infrastructure and scale with the endemicity of COVID disease,” said CEO John Jacobs.
Source: Kathimerini
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