COVID-19 Vaccine Maker Novavax's Stock Price Plummets From $330 To $7 As Pandemic Ends

COVID-19 vaccine maker Novavax's stock price has plummeted to less than $7 from a high of $330 in 2021 as the pandemic demand comes to a halt.

In a statement Tuesday, the company said there is "significant uncertainty" regarding its 2023 revenue, among others, even as it recorded a historic revenue of $2 billion in 2022, with its fourth-quarter figure reaching $357 million.

The company is also uncertain about matters surrounding the funding from the U.S. government and pending arbitration with the global vaccine alliance Gavi.

"While our current cash flow forecast for the one-year going concern look forward period estimates that we have sufficient capital available to fund operations, this forecast is subject to significant uncertainty, including as it relates to 2023 revenue, funding from the U.S. government, and pending arbitration," the company wrote.

The Maryland-based company said it has a modified agreement with the U.S. government for up to 1.5 million additional doses of Novavax's COVID-19 vaccine for delivery this year.

In November last year, the company terminated its Advanced Purchase Agreement (APA) for 350 million doses of the COVID-19 vaccine with Gavi, claiming that the alliance failed to purchase the vaccines before the end of 2022.

However, Gavi argued that Novavax was not able to make a single dose available to COVAX, a global vaccine distribution program, from the contractually stipulated sites to date, according to Reuters.

"It is clear that Novavax will not be able to meet its commitment to manufacture," a Gavi spokesperson told Reuters at the time.

The two are currently in arbitration, per the company's statement.

Meanwhile, Novavax's newly appointed CEO, John Jacobs, expressed optimism about the company's future.

"Much has been achieved over the past three years, and based on the foundation that has been laid to date, I believe that Novavax has significant potential for a bright future," Jacobs said, adding that they are aiming to deliver more products for the upcoming 2023 fall vaccination season and reduce their spending rate.

Jacobs said that Novavax has over $2 billion worth of signed contracts with governments outside the United States that they have yet to collect.

"If we execute on our operating plan, we'll be in a very strong position not only at the end of this year but going into next year," Jacobs said in an interview, per another Reuters report.

Novavax closed Wednesday at $6.86, close to its 52-week low of $6.64.