Washington : Novavax is cutting about a quarter of its global workforce as the COVID-19 vaccine maker seeks to slash expenses while dealing with uncertain future revenue.
The company said Tuesday that it expects to trim next year’s costs for research and development as well as selling, general and administrative expenses by about 40% to 50% compared to 2022.
The company has 1,992 full-time employees. A Novavax representative said the cuts will affect about 20% of that workforce, or nearly 400 people, and some of the vaccine maker’s contractors.
Novavax’s protein-based vaccine debuted long after alternatives from companies like Pfizer, Moderna and Johnson & Johnson had reached the market.
Only about 88,458 doses of the Novavax vaccine have been administered in the United States, according to the Centers for Disease Control and Prevention.
That compares to more than 400 million doses of market leader Pfizer’s two-shot original vaccine and updated booster.
The COVID-19 vaccine is Novavax’s lone commercial product. It is updating that vaccine for this fall and also developing a flu shot and a coronavirus-flu shot combination.
Novavax, based in Gaithersburg, Maryland, has been around since 1987. The company said in its SEC filing that its expenses have exceeded revenues since then.
The company’s accumulated deficit as of Dec. 31 was $4.3 billion. Shares of Novavax jumped more than $3 to $10.46 in late Tuesday morning while broader indexes slipped.
