Novavax Surprises with Quarterly Profit on COVID Vaccine Sales

Novavax, a Covid vaccine maker, surprised investors with a second-quarter profit of $58 million, compared to a net loss of $510.5 million in the same period last year. The company reported sales of $424.4 million, exceeding expectations. Novavax CEO John Jacobs attributed the strong results to recognizing revenue from prior vaccine purchase agreements in the second quarter. However, he expects little to no sales in the third quarter due to the FDA's delayed decision on Novavax's new Covid shot. The company plans to focus on grants in Q3 and aims to launch its updated Covid shot in the US commercial market in the fall. Novavax also announced a strategic partnership with SK bioscience, including royalty payments, an upfront payment of $4 million, and a stock purchase of $85 million. The company lowered its full-year revenue forecast but remains optimistic about its financial position.