Novavax (NVAX) reported its second quarter results after the bell with a narrowed net loss on strong revenue jump. The vaccine maker’s stock price increased more than 3% in the extended hours of trading. The company also reported that it achieved key milestones for NanoFlu and ResVax vaccine programs in the recently ended quarter.
Revenue jumped 60% in the quarter to $10.7 million aided by the increased grant from the Bill & Melinda Gates Foundation (BMGF) due to increased enrollment in the Prepare trial for ResVax vaccine. It’s worth noting BMGF has earmarked $89 million which would be given as grants for the Prepare trial. Novavax saw its loss reduced to $0.12 per share compared to $0.16 per share last year due to the reduction in interest expenses and lower G&A costs.
The company saw its research and development expense swelling 13% due to increased costs from its ResVax program. Final efficacy results for the Prepare trial are expected in the first quarter of next year and if the results are positive, Novavax is expected to apply for license and marketing approval in the first quarter of 2020.
Related: Novavax tumbles as net loss widened during 1Q
ResVax is developed for treating infants affected by RSV (respiratory syncytial virus) disease. If all goes well, ResVax is a potential blockbuster drug for the company, which would compete with Prevnar from Pfizer (PFE).
Another key program watched closely is its influenza vaccine NanoFlu, which is expected to commence Phase 2 trials in the third quarter. The company expects results from the Phase 2 trial in the first quarter of 2019. The market for influenza vaccine is expected to touch $5.3 billion by 2025 in the top seven markets, which would augur well for Novavax if the trial results are successful.
The company’s stock price gained nearly 25% in the last 12 months and lost 2.4% in the year-to-date period.