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Vaccine maker Novavax Inc (NASDAQ: NVAX) slumped more than 32% on Tuesday as declining demand for its COVID-19 vaccine from low and middle-income countries led the drugmaker to cut its annual revenue expectation by half.
The company on Monday said it expects 2022 revenue between $2 billion and $2.3 billion, lowering down from its prior forecast of $4 billion to $5 billion when it was hoping to benefit from the demand for its shots as part of the COVAX vaccine sharing program.
The forecast cut also dashes any hope of Novavax garnering a market share for the two-dose initial vaccination program. However, analysts were expecting the company to capture a small but meaningful share of a fast-developing market for COVID re-vaccinations.
Demand for the Novavax vaccine is also waning in the United States, where it was authorized for use among adults last month, and only 7,381 shots have been administered so far.
"I believe we were late to the market, and US vaccination was driven by what was available and shown to work, mRNA vaccines," said Chief Executive Officer Stanley Erck.
Novavax also said it does not expect to receive an order in 2022 from the COVAX facility, which is backed by the World Health Organization (WHO) and the global vaccine alliance Gavi.
Picture Credit: Reuters
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