On this page of StockholderLetter.com we present the latest annual shareholder letter from NOVAVAX INC — ticker symbol NVAX. Reading current and past NVAX letters to shareholders can bring important insights into the investment thesis.

 •  4/29/2025 Letter Continued (Full PDF)
 •  4/28/2023 NVAX Stockholder Letter
 •  4/29/2024 NVAX Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  NVAX Benford's Law Stock Score = 54

NVAX Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT

Novavax
01
A Message from Our CEO
02
2024 in Review
03
2024 Form 10-K
140
Leadership & Corporate Information

2024 Annual Report
APRIL 21, 2025
A Message from Our CEO
To Our Shareholders,
2024 was a transformational year marked by significant accomplishments. We unveiled an ambitious
corporate growth strategy aimed at maximizing the impact of our technology through R&D innovation, the
expansion of our organic portfolio and building strategic partnerships, including the out-licensing of our
technology platform and vaccine assets. This strategy also shaped our renewed mission and vision to reflect
our long-term goals.
Our Mission: By leveraging our science, our technology and our people, we will innovate and collaborate to tackle
the world   s most significant health challenges.
Our Vision: We envision a world where our technology is amplified to touch the lives of billions, sparking transformation in global health.
To execute this strategy, we advanced key regulatory and clinical programs, strengthened our financial position creating a leaner and more focused
operating model, and streamlined operations   laying the foundation for sustained growth. In 2025, we intend to continue advancing global health
and driving shareholder value by focusing on three strategic priorities.
01
Sanofi Partnership. Our first priority is to be a partner of choice, expanding global access to our COVID-19 vaccine, Matrix-M   adjuvant
and our emerging pipeline assets to drive revenue growth and strengthen Novavax   s long-term financial stability through royalties and
milestone payments.
Sanofi's role in commercializing our COVID-19 vaccine and their broad, non-exclusive access to our Matrix-M adjuvant significantly
enhances the potential for multiple revenue streams. Sanofi   s strong global presence and proven experience in vaccine commercialization,
combined with Novavax   s R&D expertise, helps give confidence that this partnership will deliver value to our shareholders and the people
who would have broadened access to our vaccine technology   providing greater protection to communities globally.
02
Leveraging Our Technology Platform and Pipeline to Forge Additional Partnerships. Our goal is to develop an exciting portfolio
of new vaccines, with the intent of creating additional partnership and collaboration opportunities for our advanced technology platform
and pipeline. As our new pipeline begins to mature, we will also consider bringing forward assets on our own without a partner, if the market
opportunity and revenue potential warrant it.
Our Matrix-M adjuvant offers the potential to enhance vaccine durability, immune response and cost efficiency. Our ongoing collaboration
with Sanofi, and additional agreements with other leading pharmaceutical companies demonstrate a strong interest in Matrix-M, and we
remain committed to exploring further partnership opportunities.
In our late-stage pipeline, we are advancing a stand-alone flu candidate and a COVID-19-Influenza Combination (CIC) vaccine candidate
for adults aged 65 and older, addressing significant consumer demand for an all-in-one solution. We anticipate data by mid-year 2025 from
the initial cohort of our Phase 3 clinical trial, and we are working to secure a partner to fund further clinical development.
03
Advancing Our Technology Platform and Early-Stage Pipeline. We are advancing our technology platform and early-stage
pipeline focused on high-value market opportunities where we believe our technology can address significant unmet medical needs,
supported by strong scientific rationale and a rigorous analysis of commercial potential. We began expanding our early-stage pipeline in
2024 with four new programs while maintaining a lean, capital-efficient and disciplined investment approach. In general, we aim to partner
early-stage assets at proof of concept, staging further investment until a partner is secured to fund full clinical development and
commercialization. For the right asset, where data and commercial opportunity indicate a unique high-value opportunity, we retain the
potential of bringing that asset forward ourselves and will make that determination on a case-by-case basis as we learn more about these
assets over time.
Looking Ahead
2025 will be the first full year operating under our new growth strategy   a significant transition for Novavax. Our plan is to continue to optimize
operations and lower expenses to create a leaner and more agile organization while shifting to a revenue model driven by milestone payments and
future royalty streams. This evolution reflects our broader strategy   expanding our technology   s reach through strategic partnerships and organic
pipeline development, adapting our business for sustainable growth.
We are returning to our roots, focusing on what we do best and what drives our
people   innovating to tackle the world   s biggest health challenges.
Thank you to our dedicated employees whose passion, expertise and commitment
drive Novavax forward, and to our shareholders for their trust and ongoing support.
John C. Jacobs
President and Chief Executive Officer
1

Novavax
2024 in Review
In 2024, Novavax experienced a significant year of transition, where we embarked upon a new corporate strategy, announced our wide-ranging
partnership with Sanofi, made important progress on our portfolio and significantly improved our financial strength. With our new corporate
growth strategy, we prioritized existing and potential new partnerships with other companies, leveraged our proven technology platform and
expanded our pipeline to unlock future opportunities.
Strategic Milestones
    Sanofi Partnership: Announced May partnership with Sanofi, transitioning our COVID-19 vaccine commercialization to a
global industry leader, with the potential for milestone payments, long-term royalties and future collaborations using our
proprietary Matrix-M   adjuvant. This includes Sanofi   s two Fast Track designated influenza-COVID-19 combination
vaccines utilizing our COVID-19 vaccine, as well as Sanofi   s right to use our Matrix-M adjuvant in advancing multiple new
vaccines within their pipeline. Sanofi   s expertise in vaccine commercialization, combined with Novavax   s R&D capabilities,
ensures continued global access to our COVID-19 vaccine and Matrix-M adjuvant.
    Regulatory Milestone: Received U.S. FDA acceptance for our filing of a Biologics License Application (BLA) for our
COVID-19 vaccine.
    Updated COVID-19 Vaccine: Launched our updated COVID-19 vaccine for the 2024-2025 vaccination season.
Pipeline and R&D Expansion
    Late-stage Pipeline: Initiated the initial cohort for our Phase 3 trial of our COVID-19-Influenza-Combination and
stand-alone flu vaccine candidates.
    Early-stage Pipeline: Identified areas to broaden our impact in infectious disease prevention in four new early-stage
vaccine candidates targeting: C. difficile, varicella-zoster (shingles), pandemic flu and RSV combinations.
    Matrix-M Innovation: Initiated exploratory work on next-generation formulations and explored potential expansion
beyond infectious diseases.
Financial Strength and Lean Operating Model
    Balance Sheet Improvement: Decreased current liabilities by $1.3 billion over the past
two years, strengthening our financial position.
    Continued Expense Reduction: On track to decrease R&D and SG&A expenses by 85%
by 2027, compared to 2022, positioning Novavax for long-term financial sustainability.
    Czech Republic Manufacturing Facility Sale: Sold our Czech Republic manufacturing
facility for $200 million, reducing costs by approximately $80 million annually.
    Cash Position: Ended full year 2024 with over $1 billion in cash and accounts receivables.
Looking Ahead
As we transition our focus to 2025, we will drive execution of our growth strategy and focus on our
three key priorities: optimizing the Sanofi partnership, executing additional business development
deals and advancing our early-stage pipeline. Novavax will continue to lower operating expenses with
the goal of making our organization leaner while executing
against our growth strategy. We will shift to a revenue
model centered on milestone payments and future
royalty streams. Focused on expanding the reach of
our technology through strategic partnerships and
adapting our business for sustainable growth, we
remain committed to innovation and delivering
impactful solutions in global health.
2



 4/29/2025 Letter Continued (Full PDF)