Novavax (NASDAQ:NVAX), a vaccine maker, reported Friday a second quarter loss, driven down by increased costs related to seasonal influenza and H1N1 research and development, as well as employee expenses.
The Rockville, Maryland-based company posted net loss of $9.4 million, or 9 cents a share, compared with a loss of $8.5 million, or 10 cents a share, in the same quarter last year, and landing marginally ahead of average analyst estimates of a loss of 10 cents a share.
Revenue for the biopharmaceutical company was $7,000, down from $29,000 in the earlier-year quarter, and missing the Street’s view of $110,000.
The primary reason for the increased loss was higher research and development spending to support the company's clinical trials related to its H1N1 and seasonal influenza vaccine candidates, as well as increased general and administrative expenses relating to employee costs.
Research and development expenses for the second quarter of 2010 were $6.3 million as compared to $5.3 million a year ago.
"Our financial results reflect the continued investment in Novavax’s vaccine candidates and prudent management of our financial and human resources," CEO Dr. Rahul Singhvi said. "In addition to advancing our clinical programs, we are contending for a potentially significant vaccine development contract with the U.S. government, we have hired outstanding new executives to guide our clinical, pre-clinical and discovery programs, and we have fortified our patent portfolio."
The company also announced Friday the appointment of Richard Douglas, Ph. D., to its board of directors. Douglas previously served as the senior vice president of corporate development at Genzyme Corp, (NASDAQ:GENZ), where he was involved with several mergers and acquisitions.