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Novavax Reports Third Quarter 2007 Financial Results and Progress with Vaccine Development Programs
Date:11/12/2007

by the Varicella Zoster Virus, expanding our vaccine product pipeline

to three.

-- Continued progress in building a GMP pilot-plant facility at our

Rockville, Maryland headquarters to allow manufacturing of Phase I-III

clinical supplies of our VLP vaccine candidates.

-- Announced in conjunction with Allergan the wind down of manufacturing

of the production of Estrasorb (R). Estrasorb (R) was acquired by

Allergan as a result of their acquisition of Esprit Pharma in October

2007.

Some of the key milestones anticipated during the fourth quarter of 2007 are:

-- The announcement of a fourth vaccine candidate.

-- Pre-clinical results for our trivalent seasonal flu VLP vaccine

candidate.

-- Completion of construction of our GMP pilot manufacturing facility for

production of our VLP vaccine candidates.

-- Scheduled results from our Phase I/IIa H5N1 pandemic flu vaccine trial.

Third Quarter Financial Results

Revenues for the third quarter ended September 30, 2007 were $1.3 million, an increase of $0.1 million over the $1.2 million reported in the comparable 2006 period. Revenues consist of ESTRASORB(R) sales and royalties paid by Esprit Pharma, Inc. of $0.5 million as well as contract research and development revenues of $0.7 million in the third quarter of 2007 as compared to $0.6 million of research and development revenues for the same period in 2006).

Cost of products sold for the three-month period ended September 30, 2007 was $1.1 million as compared to $1.2 million for the same period in 2006. Included in the cost of products sold was $0.6 million in idle capacity costs at our manufacturing facility compared to $0.7 million of such costs in the comparable 2006 quarter. The company also incurred $0.8 million in excess inventory costs over market for the third quarter as compared to $0.3 million in the comparable 2006 period, which r
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SOURCE Novavax Inc.
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