Novavax has cut $50 million in costs in the first quarter, which may just be the tip of the iceberg, according to an interview with new CEO John Jacobs in Reuters.
Jacobs told the outlet Wednesday that the company is looking at everything from land to headcount with respect to potential areas to shave off additional expenses. His comments come weeks after the company revealed that it had doubts about its ability to continue operating under current revenue and funding conditions. The company’s shares have fallen more than 57% over the last six months, from $21.28 to $9.08.
In a statement to Fierce Biotech, Jacobs said that while there have not been any staff reductions yet, “our goal is to continue to find ways to operate efficiently.”
Novavax’s stock—literally and metaphorically—ascended during the pandemic as it played catchup to Moderna, Pfizer and J&J in the COVID vaccine race. After racking up regulatory approvals elsewhere in the world, the company finally nabbed U.S. authorization in July last year. But a dwindling market and uncertain government funding have thrust the company toward uncertainty.
To save cash and reprioritize, Novavax paused development of its RSV vaccine, focusing on the COVID shot and potential combinations with a flu shot candidate. Jacobs says that the company is pressing ahead with its COVID-19 studies, telling Reuters that he expects to have an updated booster available for a fall vaccination campaign. He also said that the company is looking for further funding for its COVID-influenza combination shot, including a potential partnership. The combo is currently in a phase 1/2 trial.
Novavax’s other ambitions include a malaria vaccine currently in a phase 2 trial and two vaccines in preclinical development aimed at severe acute respiratory syndrome and middle east respiratory syndrome, respectively.
Jacobs took over at the beginning of the year, replacing Stanley Erck who had led the company since 2011. The newly-minted CEO jumped from Harmony Biosciences where he had served as CEO since July 2018.