Novavax Lifts 2026 Revenue Framework to $400M on Sanofi Milestone

A $125 million milestone tied to Sanofi’s start of a late-stage combination flu and COVID-19 vaccine trial in Europe pushed Novavax, Inc. to raise its 2026 adjusted total revenue framework to $385 million to $415 million, up from $235 million to $275 million in August, the Gaithersburg, Maryland, vaccine maker said Thursday.

The new range lifts the midpoint by $145 million to $400 million. Novavax said it earned the milestone in October when Sanofi launched the Phase 3 trial.

• Total revenue: $68.3 million, vs. $70.4 million a year earlier (down 3%)
• Product sales: $25.7 million, vs. $13.4 million (up 91%)
• Licensing, royalties and other revenue: $42.6 million, vs. $57.0 million
• Net loss: $31.4 million, or 19 cents a share, vs. $202.4 million, or $1.25 a share
• R&D expenses: $52 million, vs. $98 million
• SG&A expenses: $24 million, vs. $32 million
• Cash, equivalents, marketable securities and restricted cash: $627 million at Sept. 30, vs. $751 million at Dec. 31, 2025

The company said the drop in licensing revenue was driven mainly by a $42 million year-over-year reduction in research reimbursement as it nears completion of clinical support work for Sanofi on Nuvaxovid, its protein-based COVID-19 vaccine. The quarter also included $11 million of non-cash deferred royalty recognition tied to earlier Nuvaxovid sales by SK bioscience to the South Korean government.

Sanofi payments still ahead

Novavax said Sanofi has confirmed plans to begin a U.S. Phase 3 trial of the combination vaccine in 2027 to support U.S. approval. Novavax is eligible for a further $225 million milestone on the first U.S. commercial sale of such a product, after Sanofi completes clinical and FDA requirements, plus royalties in the high single digits to sub-teens percentage of Sanofi’s global net sales of the combination shot.

A separate $75 million milestone would be triggered when the manufacturing technology transfer for Nuvaxovid to Sanofi is completed, which the company expects in mid-2027. Sanofi leads U.S. commercial activities for the 2026-2027 COVID-19 season, and Novavax is eligible for royalties in the high teens to low twenties percentage of Sanofi’s global Nuvaxovid net sales.

Cost guidance and pipeline

The company now expects combined research and development plus selling, general and administrative expenses of $375 million to $395 million for 2026, compared with $370 million to $410 million previously. Excluding partner reimbursements, it projects $315 million to $335 million.

Chief Executive Officer John C. Jacobs said the company continued to reduce expenses while advancing its research. Novavax said its Clostridioides difficile vaccine candidate could enter clinical testing as early as 2027, and that experiments with its Matrix-M adjuvant are under way in infectious disease and oncology models.

Sources: Novavax investor relations, Novavax Exhibit 99.1 (SEC), Novavax Form 8-K filing (SEC)