Novavax said on Tuesday that it will cut 25% of its global workforce as the cash-strapped biotech presses ahead with plans to cut expenditures and overcome sluggish demand for its COVID-19 vaccines.
The firm, which had previously expressed major concerns about creating income for the year, now forecasts total annual revenue of $1.4 billion to $1.6 billion based on the timely release of its upgraded COVID shot.
It posted an overall loss of $293.9 million in the first quarter, compared to a net gain of $203.4 million the previous year.
Novovax’s coronavirus vaccine is its only marketed product, and it is now expecting that its cost controls and successful testing for its COVID/flu combination vaccine candidate will assist it keep its head afloat.
According to the company’s most recent regulatory filings, the layoffs would amount to around 498 positions out of the 1,992 full-time employees it had as of Feb. 21.
The biotech anticipates that the cost-cutting strategies will help it lower its yearly research and commercial expenditures by 20% to 25% compared to last year.
At the end of the quarter, it had $637 million in cash and equivalents, compared to $1.3 billion on December 31.