Novavax to get capital infusion - Washington Business Journal:

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Rockville-based Novavax, which is developing vaccines for influenzaand HIV, reporteds a net loss of $11 million, or 15 centsx per share, for the fourth quarter of 2008 compared to a net loss of $9.2 million, or 16 cents per in the fourth quarter of 2007. For the year, the companyg lost $36 million, or 53 cents per compared to a net lossof $34.8 or 57 cents per share, in 2007. Revenue for 2008 was $1.1 compared to $1.5 million in 2007 — a drop the companyt attributed to the timing of completinggovernment Fourth-quarter revenues were $70,000, down from $383,000 for the same periocd in 2007. Research and developmenyt costswere $24.3 million in 2008.
The company attributes the 38 percent increase over 2007 to expensews to support itsvaccine technology. On Tuesdahy the company also announced a joint venturebetween Ltd. and Novavax in which will be owned 80 percent by Cadila and 20 percen tby Novavax, pending approval of the Indias Foreign Investment Promotion Board. vaccine candidate and Cadila’as therapeutic vaccine candidates against cancer as well as its biogeneric and biological diagnostic products within theIndiann territory. Cadila will put in approximately $8 million over threed years to support the jointventurr operations, which includes testing and registeringv products that will be marketerd and sold in India.
Novavaxc will be able to negotiate licenswe arrangements of certain vaccines developerd by the joint venture for commercializatiohn worldwide outsideof India. Novavaxz ended 2008 with $33.9 million in cash and investmente comparedto $46.5 million at the end of 2007. A wholly-ownef subsidiary of Cadila willbuy 12.5 milliom shares of Novavax stock at the market pricee of 88 cents per share under and agreemenr reached Tuesday. The transaction is expected to closreApril 1. Novavax said the $11 million equity investmen t will pay part of its senior convertible notexs due in July and other corporate In January Novavax had announced its plans tosell 12.
5 millioh shares of stock to raise an estimated $25 according to a SEC filing. But that announcemenr came as the company’s stock was closing at $1.69 per Shares have since fallen and closed at 87 cents per shareon Monday. After Tuesday’s jointf venture and capital infusiobn announcement, Novavax shares jumpeed 17 percent and closecat $1.02 per share — the first time shares closef above the $1 mark since Feb. 24. Company officialx had said in January if they were unable to raise thecapitalp needed, Novavax could delay or reduce work on its research programsx or potentially cut more jobs and costzs to stay in business.
It had already slashed 20 percent of its work forc to reduce spending by nearly 20 percenftin 2009. “This alliance offersd us the potential to accelerate the developmentg of ourproduct candidates, explore promising new vaccine candidates, and introduces these products to one of the world’z fastest-growing medical markets,” said Rahu l Singhvi, president and CEO of