Shares in Novavax, Inc. (NASDAQ:NVAX) tanked 33.64% in after-hours trading after the company halved its full-year revenue forecast due to a global supply glut and weak demand for its Covid-19 vaccine.
Shares were trailing at US$57.25 on Nasdaq as the company missed financial expectations.
The Maryland-based biotech company slashed its 2022 sales outlook by about 50% to US$2bn-US$2.3bn from its previous forecast of US$4bn-US$5bn.
Novavax said it is not expecting an order in 2022 from the Covax facility, which is supported by the World Health Organisation and the global vaccine alliance Gavi.
The firm's second-quarter revenue of US$186mln was well below market expectations of US$1.02bn, and it posted a loss of US$510.5mln or US$6.53 per share.
"For the quarter revenue was US$186mln, a significant shortfall from both the first-quarter results, and as I said from our expectations," chief executive Stanley Erck told analysts during the company's earnings call.
"We are now projecting that we will have no new revenues in '22 from the US or from Covax," he said.
The company's vaccine was approved for use in adults last month in the US, where it was seen as driving uptake among those who were skeptical of market leaders' Pfizer and Moderna's messenger RNA (mRNA) technology shot.
However, government data shows only 7,381 Novavax vaccine doses were administered in the country.
"I believe we were late to the market, and US vaccination was driven by what was available and shown to work, mRNA vaccines," the CEO said.
Novavax's protein-based shot was plagued by manufacturing delays, regulatory delays, as well as sluggish uptake in key markets like Europe.