The vaccine company Novavax, which manufactures COVID-19 vaccines, says it has “substantial doubts” about its own ability to stay in business long term.
Novavax said its current cash flow forecast should support short-term operations, but “significant uncertainty” about 2023 revenue, U.S. government funding and ongoing arbitration are jeopardizing the company’s outlook in the future.
“Given these uncertainties, substantial doubt exists regarding our ability to continue” with financial stability, the company concluded Tuesday in its fourth-quarter 2022 report.
Novavax stocks fell 27.2 percent after its report announced the “substantial doubt” and a net loss of $658 million for 2022.
The Food and Drug Administration authorized and the Centers for Disease Control and Prevention endorsed Novavax’s COVID-19 shot last summer.
The Biden administration then purchased 3.2 million doses of the vaccine, and modified its order just this month to secure another 1.5 million jabs.
The protein-based COVID-19 vaccine has been billed as an alternative to the mRNA shots produced by Pfizer and Moderna.