Post by marriott on Aug 27, 2022 22:52:15 GMT
The " facts ' on hand for Novavax at present are filled with a safe and effectives vaccine along with production miscues , missed opportunities , docile regulatory posture and a market presence that is supported by EUAs and CMAs . With the changing perceptions of the future of the infectious diseases , Biologics Licenses granted to Novavax across the globe are REQUIRED !
Malcom Baker and Jeffrey Wurgler define investor sentiment best as “Investor sentiment, defined broadly, is a belief about future cash flows and investment risks that is not justified by the facts at hand. ”
Let's look at some " facts on hand " concerning Novavax .
During the Q2 earning summary , Novavax reported an EPS of 6.53 , well below expectations ( $11.71 )
Note the following statement made by Jim Kelly - Chief Financial Officer and Treasurer -
" For the second quarter of 2022, we recorded total revenue of $186 million compared to $298 million in the second quarter of 2021. Total revenue for the second quarter included $55 million in product sales based on 3 million doses sold by Novavax; $23 million of royalties and other revenue, including the recognition of a $20 million milestone payment from Takeda related to our first commercial sale in Japan; and $108 million in grants revenue from the U.S. government. "
So only $55m of the $186m was the result of product sales ! This does NOT exude confidence .
If I were in the leadership team at Novavax I would make it very clear to all that future cash flows and strong global market positions must be in the " hands " of the company and not dependent on partnerships or government grants . I am not suggesting that our relationship with Serum Institute of India is a negative . I am saying Novavax must get financially stronger so it may better control its future moves .
At a current share price of $ 35.20 , there is no question market sentiment is reflecting serious concern about future cash flows and business risk !
I applaud the hard work done by the entire Novavax team over the past two years . However , it is time for the company to change its story from making safe and effective vaccines and morph to selling its licensed vaccines IN the market.
An so , I will paraphrase George Eliot 's advice and tell the current leadership :
...... It is never too late to trust the right individuals to help the company be what you thought it could be !
TO THE leadership GROUP AT NOVAVAX , START CHANGING THE " FACTS ON HAND " YESTERDAY !
Malcom Baker and Jeffrey Wurgler define investor sentiment best as “Investor sentiment, defined broadly, is a belief about future cash flows and investment risks that is not justified by the facts at hand. ”
Let's look at some " facts on hand " concerning Novavax .
During the Q2 earning summary , Novavax reported an EPS of 6.53 , well below expectations ( $11.71 )
Note the following statement made by Jim Kelly - Chief Financial Officer and Treasurer -
" For the second quarter of 2022, we recorded total revenue of $186 million compared to $298 million in the second quarter of 2021. Total revenue for the second quarter included $55 million in product sales based on 3 million doses sold by Novavax; $23 million of royalties and other revenue, including the recognition of a $20 million milestone payment from Takeda related to our first commercial sale in Japan; and $108 million in grants revenue from the U.S. government. "
So only $55m of the $186m was the result of product sales ! This does NOT exude confidence .
If I were in the leadership team at Novavax I would make it very clear to all that future cash flows and strong global market positions must be in the " hands " of the company and not dependent on partnerships or government grants . I am not suggesting that our relationship with Serum Institute of India is a negative . I am saying Novavax must get financially stronger so it may better control its future moves .
At a current share price of $ 35.20 , there is no question market sentiment is reflecting serious concern about future cash flows and business risk !
I applaud the hard work done by the entire Novavax team over the past two years . However , it is time for the company to change its story from making safe and effective vaccines and morph to selling its licensed vaccines IN the market.
An so , I will paraphrase George Eliot 's advice and tell the current leadership :
...... It is never too late to trust the right individuals to help the company be what you thought it could be !
TO THE leadership GROUP AT NOVAVAX , START CHANGING THE " FACTS ON HAND " YESTERDAY !