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Novavax Reports First Quarter 2008 Financial Results
Date:5/9/2008

e second half of 2008, we expect to have two vaccines in Phase II clinical trials, progress our varicella zoster program into preclinical studies, and announce our fourth vaccine program-all of which reflect a rapid advancement of our vaccine pipeline."

2008 Financial Results

Revenue from continuing operations, for the first quarter ended March 31, 2008 was $0.5 million compared to $0.5 million for the same period in 2007, essentially no change from prior year. The change year over year was primarily due to higher research revenues in 2008 offset by lower Gynodiol sales in 2007 due to the discontinued sale of the product in mid-2007.

There were no costs of products sold from continuing operations in the first quarter of 2008 due to the classification of Estrasorb manufacturing into discontinued operations, as compared to $50,000 in 2007 related to Gynodiol sales.

Research and development costs for the first quarter of 2008 were $4.4 million compared to $3.7 million in the first quarter of 2007, an increase of $0.7 million or 21.4%. The increase in the first quarter of 2008 as compared to 2007 was due to higher research and development spending to support the Company's pandemic influenza vaccine clinical trials, as well as additional pre-clinical studies for our seasonal influenza program in the first quarter of 2008. These increases were primarily for increased personnel, facility costs and outside expenses (including sponsored research, clinical research organization costs and consulting agreements) associated with expanded preclinical studies, human trial study costs, testing and process development, manufacturing and quality-assurance and quality-control related activities.

General and administrative costs were $3.2 million in the first quarter of 2008 as compared to $4.6 million in the prior year. The decrease of $1.4 million in the first quarter of 2008 as compared to the first quarter of 2007 was principally due to the follow
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SOURCE Novavax, Inc.
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