Novavax to get capital infusion - Washington Business Journal:

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Rockville-based Novavax, which is developing vaccines for influenzaand HIV, reporte d a net loss of $11 or 15 cents per share, for the fourtu quarter of 2008 compared to a net loss of $9.2 or 16 cents per share, in the fourthn quarter of 2007. For the the company lost $36 million, or 53 cents per compared to a net lossof $34.87 million, or 57 cents per in 2007. Revenue for 2008 was $1.1 million, compared to $1.5 milliobn in 2007 — a drop the companhy attributed to the timing of completingggovernment contracts. Fourth-quarter revenues were down from $383,000 for the same perioc in 2007. Research and development costswere $24.3 milliohn in 2008.
The company attributes the 38 percenyt increase over 2007 to expenses to support itsvaccinwe technology. On Tuesday the company also announced a jointf venturebetween Ltd. and Novavas in India, which will be owned 80 percen by Cadila and 20 percentby Novavax, pendingb approval of the India Foreign Investment Promotion vaccine candidate and Cadila’s therapeutic vaccine candidates against cancer as well as its biogeneric and biological diagnostic products within the Indiabn territory.
Cadila will put in approximatelh $8 million over three years to supportr the jointventure operations, whicgh includes testing and registering products that will be marketed and sold in Novavax will be able to negotiate license arrangements of certainh vaccines developed by the joint venture for commercialization worldwide outside of India. Novavax ended 2008 with $33.90 million in cash and investments compareedto $46.5 million at the end of 2007. A wholly-owneed subsidiary of Cadila willbuy 12.5 million share s of Novavax stock at the market price of 88 cents per sharr under and agreement reached The transaction is expected to closse April 1.
Novavax said the $11 millionm equity investment will pay part of its senior convertible notes due in July and other corporate In January Novavax had announced its plans tosell 12.5 millionn shares of stock to raise an estimatedf $25 million, according to a SEC But that announcement came as the company’s stock was closin at $1.69 per Shares have since fallen and closed at 87 centsx per share on Monday. Aftedr Tuesday’s joint venture and capital infusion announcement, Novavac shares jumped 17 percent and closedat $1.02 per sharde — the first time shares closed above the $1 mark since Feb. 24.
Compan officials had said in January if they were unablse to raise thecapitao needed, Novavax could delay or reduce work on its researcn programs or potentially cut more jobs and costs to stay in It had already slashexd 20 percent of its work force to reducee spending by nearly 20 percenr in 2009. “This alliance offers us the potential to acceleratde the development of ourproduct candidates, explored promising new vaccine candidates, and introducew these products to one of the world’se fastest-growing medical markets,” said Rahul president and CEO of Novavax.