Novavax shares plunge as company halves revenue forecast on low COVID-19 vaccine demand

Novavax said it now expects 2022 total revenue in the range of $2 billion to $2.3 billion, compared with its prior forecast of $4 billion to $5 billion

Novavax Inc on Monday cut its full-year revenue forecast by half, as the vaccine maker battles low demand for its COVID-19 shot, sending its shares down 32% in extended trading.

Novavax said it now expects 2022 total revenue in the range of $2 billion to $2.3 billion, compared with its prior forecast of $4 billion to $5 billion.

The company's protein-based COVID-19 vaccine received authorisation in the United States in July for use among adults.

Health officials hope that the shot's more traditional technology would convince those skeptical of messenger RNA technology from Pfizer and Moderna to get vaccinated.

However, only 7,381 doses of the vaccine have been administered in the United States so far, according to the latest government data.

The company sold 3 million doses of the vaccine, recording $55 million in sales in the second quarter ended June 30. This compares to $586 million in the first quarter.

Novavax has also faced manufacturing hurdles and regulatory delays, and the vaccine's uptake in key markets such as Europe has been sluggish.