(Reuters) -Novavax mentioned on Tuesday it is going to scale back its world workforce by 25% because the cash-strapped biotech pushes ahead with its plans to slash bills and navigate tepid demand for its COVID-19 vaccines.
The corporate, which had earlier flagged important uncertainty round producing income for the 12 months, mentioned it expects whole annual income between $1.4 billion and $1.6 billion, counting on a well timed launch of its up to date COVID shot.
Individually, Novavax mentioned its COVID/flu mixture shot was secure and well-tolerated in a mid-stage examine, sending shares of the corporate up 9% earlier than the bell.
International regulators count on COVID vaccination campaigns to be performed yearly, just like annual flu inoculations.
Novavax's coronavirus vaccine is its lone marketed product after 35 years in enterprise and the corporate is now hoping that its price controls and a profitable trial for its COVID/flu mixture vaccine candidate will assist it keep afloat.
For the primary quarter, it reported a internet lack of $293.9 million, in contrast with a year-ago revenue of $203.4 million.
The layoffs, a part of Novavax's ongoing cost-reduction measures, would translate to about 498 jobs out of the 1,992 full-time staff it had as of Feb. 21 in keeping with the corporate's newest regulatory filings.
The biotech expects the cost-cut plans to assist scale back its annual analysis and industrial bills by 20% to 25% from final 12 months. It can additionally report about $10 million to $15 million in restructuring fees.
The corporate had $637 million in money and equivalents on the finish of the quarter, in contrast with $1.3 billion as of Dec. 31.
(Reporting by Bhanvi Satija and Raghav Mahobe in Bengaluru; Enhancing by Devika Syamnath)