Novavax, Inc.: Novavax Reports Second-Quarter 2014 Financial Results

     Novavax, Inc.: Novavax Reports Second-Quarter 2014 Financial Results

GAITHERSBURG, Md., Aug. 6, 2014 (GLOBE NEWSWIRE) -- Novavax, Inc.
(Nasdaq:NVAX), a clinical-stage biopharmaceutical company focused on the
discovery, development and commercialization of recombinant nanoparticle
vaccines and adjuvants, today reported its financial results for the second
quarter and six months ended June 30, 2014.

Novavax Corporate Highlights

Second Quarter Achievements:

- Delivered positive top-line data from a dose-confirmatory Phase 2 clinical
trial of its RSV F-protein vaccine candidate in 720 women of childbearing age,
including a key finding that the highest levels of Palivizumab-competing
antibodies (PCA) observed in any of its previous trials was achieved with only
one dose of its vaccine candidate;

- Reported follow-up data from its dose-ranging Phase 1 clinical trial of its
RSV F-protein vaccine candidate in 220 elderly subjects, showing sustained
levels of RSV F antibody and PCA responses were demonstrated over a four to
six month period; and

- Raised total net-proceeds of $108 million, after deducting underwriters
discount and offering expenses, in an underwritten public offering.

2014 Anticipated Events:

- Release of top-line data from recently initiated Phase 1/2 clinical trial of
H7N9 avian influenza VLP vaccine candidate with its Matrix-M adjuvant in the
third quarter of 2014;

- Initiate Phase 2 clinical trial of its RSV F-protein vaccine candidate for
protection of infants via maternal immunization in pregnant women in fourth
quarter of 2014;

- Initiate Phase 1 clinical trial of its RSV F-protein vaccine candidate for
protection of pediatrics in fourth quarter of 2014;

- Initiate Phase 2 clinical trial of its RSV F-protein vaccine candidate for
protection of elderly in fourth quarter of 2014;

- Initiate Phase 2 clinical trial of its quadrivalent VLP seasonal influenza
vaccine in the fourth quarter of 2014;

- Novavax, Inc. 2014 Analyst and Investor Meeting to be held on Tuesday,
September 23, 2014 in New York City; and

- Novavax will present the following pre-clinical data at the upcoming ICAAC
conference to be held in Washington, DC between September 5 - 9, 2014:

  oPresentation # I-649: "Immunization of Pregnant Baboons with the RSV
    Nanoparticle Vaccine Protects Infant Baboons Challenged with Respiratory
    Syncytial Virus in a Comparable Manner to Infants Prophylaxed with
    Palivizumab;" and
  oPresentation # I-314B: "Development and Characterization of Recombinant
    RSV Nanoparticle Vaccine Induced Monoclonal Antibody."

"Progress in the second quarter maintained the momentum built in both the
first quarter of the year and in 2013. We continue to make progress in our RSV
and influenza vaccine development programs," said Stanley C. Erck, President
and CEO of Novavax. "The second half of 2014 will be the most productive
period in the company's history. We plan to initiate 4 clinical studies before
the end of 2014; RSV maternal immunization, pediatric and elderly, as well as
a seasonal influenza clinical trial. We also plan to initiate a combination
RSV/seasonal influenza clinical trial in early 2015. In addition, we plan to
present pre-clinical and clinical data at several important medical meetings
later this year."

Financial Results for the Three and Six Months Ended June 30, 2014

Novavax reported a net loss of $17.9 million, or $0.08 per share, for the
second quarter of 2014, compared to a net loss of $12.6 million, or $0.08 per
share, for the second quarter of 2013. For the six months ended June 30, 2014,
the net loss was $31.7 million, or $0.15 per share, compared to a net loss of
$22.6 million, or $0.15 per share, for the same period in 2013.

Novavax revenue in the second quarter of 2014 increased 134% to $8.3 million
as compared to $3.5 million for the same period in 2013. The increase in
revenue was primarily due to the higher level of activity in the second
quarter of 2014 associated with the company's Phase 1/2 clinical trial using
its H7N9 pandemic influenza candidate and Matrix-M adjuvant and preliminary
manufacturing work for its Phase 2 seasonal influenza clinical trial, both
under the HHS BARDA contract, and with the company's Phase 2 clinical trial in
women of childbearing age under its amended collaboration with PATH. In
conjunction with the increase in revenue, the cost of government contracts
revenue in the second quarter of 2014 increased 213% to $5.1 million as
compared to $1.6 million for the same period in 2013. This increase was
primarily related to higher level of activity associated with the company's
previously mentioned pandemic and seasonal influenza activities.

Research and development expenses increased 41% to $15.2 million in the second
quarter of 2014, compared to $10.8 million for the same period in 2013,
primarily as a result of higher employee-related costs tied to continued
growth in support of the company's RSV and influenza vaccine programs, as well
as Novavax AB research and development expenses. General and administrative
expenses increased 45% to $5.8 million in the second quarter of 2014 as
compared to $4.0 million for the same period in 2013, resulting from higher
employee-related costs, as well as Novavax AB general and administrative
expenses, partially offset by lower professional fees.

As of June 30, 2014, the company had $208.8 million in cash and cash
equivalents and investments compared to $133.1 million as of December 31,
2013. In June 2014, the company raised net proceeds of approximately $108
million through the sale of its common stock. Net cash used in operating
activities for the six months of 2014 was $31.4 million compared to $18.2
million for the same period in 2013. The factors contributing to the increase
in cash usage are as described above.

Conference Call
Date:                   August 6, 2014
Time:                   4:30 PM US eastern time
                        1 (877) 212-6076 (domestic) or 1 (707) 287-9331
Dial-in number:        (international)
Via Web:                www.novavax.com
Conference call Replay:
                        Starting at 6:31 PM on August 6, 2014 until midnight
Dates:                  October 6, 2014
                        1 (855) 859-2056 (domestic) or 1 (404) 537-3406
Dial-in number:         (international)
Passcode:               82216889
Via-Web:                www.novavax.com, "Investor Info"/"Events"

About Novavax

Novavax, Inc. (Nasdaq:NVAX) is a clinical-stage biopharmaceutical company
creating novel vaccines and vaccine adjuvants to address a broad range of
infectious diseases worldwide. Using innovative proprietary recombinant
nanoparticle vaccine technology, the company produces vaccine candidates to
efficiently and effectively respond to both known and newly emergent diseases.
Additional information about Novavax is available on the company's website,
novavax.com.

Novavax Inc., Forward-Looking Statements

Statements herein relating to the future of Novavax and the ongoing
development of its vaccine and adjuvant products are forward-looking
statements. Novavax cautions that these forward looking statements are subject
to numerous risks and uncertainties, which could cause actual results to
differ materially from those expressed or implied by such statements. These
risks and uncertainties include those identified under the heading "Risk
Factors" in the Novavax Annual Report on Form 10-K for the year ended December
31, 2013, filed with the Securities and Exchange Commission (SEC). We caution
investors not to place considerable reliance on the forward-looking statements
contained in this press release. You are encouraged to read our filings with
the SEC, available at sec.gov, for a discussion of these and other risks and
uncertainties. The forward-looking statements in this press release speak only
as of the date of this document, and we undertake no obligation to update or
revise any of the statements. Our business is subject to substantial risks and
uncertainties, including those referenced above. Investors, potential
investors, and others should give careful consideration to these risks and
uncertainties.

                                NOVAVAX, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except per share information)
                                 Three Months Ended       Six Months Ended
                                      June 30,                June 30,
                                  2014        2013        2014        2013
                                     (unaudited)             (unaudited)
Revenue                           $8,259    $3,531   $15,721    $7,365
Costs and expenses:
Cost of government contracts
revenue                              5,102       1,632       8,123       3,344
Research and development            15,202      10,785      29,720      20,041
General and administrative           5,806       4,012      10,114       6,882
Total costs and expenses            26,110      16,429      47,957      30,267
Loss from operations              (17,851)    (12,898)    (32,236)    (22,902)
Interest income (expense), net        (31)           3        (71)          27
Other income                            18          --          18         --
Change in fair value of
warrant liability                      --         267         --         267
Realized gains on investments          --         --         615         --
Loss from operations before
income tax expense                (17,864)    (12,628)    (31,674)    (22,608)
Income tax expense                     --           5         --          22
Net loss                       $ (17,864) $(12,633) $ (31,674) $(22,630)
Basic and diluted net loss per
share                            $(0.08)   $(0.08)   $(0.15)   $(0.15)
Basic and diluted weighted
average number of common
shares outstanding                 217,178     152,312     213,075     150,391

                 SELECTED CONSOLIDATED BALANCE SHEET DATA
                              (in thousands)
                                                  June 30,   December 31,
                                                     2014         2013
                                                  (unaudited)
Cash and cash equivalents                           $103,857    $119,471
Investments                                          104,951      13,597
Total current assets                                 166,602     145,001
Working capital                                      149,123     126,879
Total assets                                         311,991     235,125
Total notes payable and capital lease obligations      1,808       2,184
Total stockholders' equity                           281,731     203,234

CONTACT: Barclay A. Phillips
 SVP, Chief Financial Officer and Treasurer
 Novavax, Inc.
 240-268-2000

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Source: Novavax, Inc. via Globenewswire
HUG#1847055
 
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