Novavax (NVAX) H.C. Wainwright 26th Annual Global Investment Conference 2024 summary

Strategic pillars and partnerships

• Four value drivers: Sanofi agreement, late-stage pipeline, Matrix platform business development, and organic portfolio expansion.

• Sanofi deal includes $500M upfront, $70M equity, $700M milestones, and long-term royalties.

• Sanofi gains access to Matrix technology for non-flu vaccines, with up to $210M milestones per vaccine and royalties for 20 years.

• Partnership leverages Sanofi’s leadership in respiratory vaccines and targets premium 65+ markets.

Technology and pipeline development

• Matrix-M, a saponin-based adjuvant, enhances both antibody and T-cell responses, distinguishing the platform.

• Matrix-M shows potential to boost other marketed vaccines and non-viral antigens, with possible expansion beyond infectious diseases.

• Combination COVID/flu vaccine (CIC) and standalone flu vaccine entering phase III trials in October, with data expected mid-2025.

• IND-enabling work underway for RSV and H5N1 programs, aiming for partner readiness.

Financial discipline and operational transformation

• Transitioning from pandemic-scale operations to a lean R&D-focused model, targeting profitability.

• R&D and SG&A spend reduced from $1.7B in 2022 to a projected <$350M by 2026, an 80% reduction.

• 2024 R&D/SG&A expected at $750M, dropping below $500M in 2025 and $350M in 2026.

• Cash flows from Sanofi and future partnerships to support development and operational sustainability.