Novavax -11.6% AH after announcing $100M stock offering

Novavax (NVAX) says it'll use the offering's proceeds for "general corporate purposes, the advancement of its clinical-stage vaccine candidates and its preclinical research programs, manufacturing and process development activities, capital expenditures and other strategic purposes."

The drug developer had $110.3M in cash at the end of Q1, and less than $2M in debt. 2013 free cash flow was -$51M.

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Comments (6)
  • nthurster
    , contributor
    Comments (38) | Send Message
    Why does NVAX need another $100M? Are they anticipating longer development/approval processes than originally planned? Is there an acquisition in the future?


    Does anyone have any insight or thoughts on this?
    4 Jun 2014, 05:47 PM Reply Like
  • tloindc
    , contributor
    Comment (1) | Send Message
    Been on this ride before and seems that it is the future. This dilution has a short term effect and was well tolerated last time. This was when we saw the run up to low $6 s'.


    History has a funny was of repeating itself and this is a buying opportunity if I have see one!
    4 Jun 2014, 10:21 PM Reply Like
  • pwd9398
    , contributor
    Comments (89) | Send Message
    I have a small long position in NVAX and I think they have a great-looking tech, but I agree with nthurster... what do they need the money for? Didn't they just dilute 6 months ago? They also have a TON of partnership revenue for a developmental small cap biotech. I wonder if something else is in the pipe (good or bad...)
    4 Jun 2014, 10:34 PM Reply Like
  • Mondego
    , contributor
    Comments (421) | Send Message
    $NNVC is next. stock always makes massive movements before an offering
    5 Jun 2014, 02:49 AM Reply Like
  • Stephen Tips
    , contributor
    Comments (653) | Send Message
    At 4:43 PM, the following was published on NASDAQ AH:


    Novavax, Inc. (NVAX) is -0.0106 at $4.76, with 3,181,256 shares traded. As reported by Zacks, the current mean recommendation for NVAX is in the "strong buy range." (Just mentioning this.)


    Read more:


    At 8:00 PM, down $.42 AH from the close.


    In the May 15, 2014, SA article by Michael Slattery (, he states:


    “Novavax currently has $130 million in cash reserves and two clinical development partners, neither of which will share in downstream profits.”


    This sounds positive - manufacturing and commercial development.


    Similar story here:



    Long NVAX
    5 Jun 2014, 04:11 AM Reply Like
  • globebag
    , contributor
    Comments (26) | Send Message
    I think the CFO knows that issuing stock can be tricky and that you need to sell shares when the window is open. The market has been receptive to IPOs and secondaries and you need to sell when the market conditions are favorable.
    5 Jun 2014, 08:46 AM Reply Like
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