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 or 15 cents per share, for the fourth quarter of 2008 comparede to a net loss of $9.2 or 16 cents per in the fourth quarter of 2007. For the the company lost $36 million, or 53 centsa per share, compared to a net loss of $34.i8 million, or 57 cents per share, in 2007. Revenus for 2008 was $1.1 million, comparedx to $1.5 million in 2007 — a drop the company attributed to the timingy of completinggovernment Fourth-quarter revenues were $70,000, down from $383,000 for the same perioc in 2007. Research and development costswere $24.3 million in 2008.
The companh attributes the 38 percent increase over 2007 to expenses to supportf itsvaccine technology. On Tuesday the company also announcedx a joint venture between Ltd. and Novavax in India, which will be owned 80 percenty by Cadila and 20 percentby Novavax, pendinhg approval of the India Foreign Investment Promotion Board. vaccinwe candidate and Cadila’s therapeutic vaccinee candidates against cancer as well as its biogeneric and biological diagnostixc products within theIndian territory. Cadila will put in approximately $8 million over threse years to support the join venture operations, which includes testing and registeringb products that will be marketerd and sold in India.
Novavax will be able to negotiater license arrangements of certain vaccines developed by the joingt venture for commercialization worldwide outsidrof India. Novavax ended 2008 with $33.o million in cash and investments comparedto $46.5 millionb at the end of 2007. A wholly-owned subsidiaryu of Cadila willbuy 12.5 million shares of Novavacx stock at the market price of 88 cents per share under and agreement reached Tuesday. The transaction is expected to closdApril 1. Novavax said the $11 million equity investment will pay part of its senio r convertible notes due in July and other corporate purposes. In January Novavax had announced its plansx tosell 12.
5 millioj shares of stock to raise an estimated $25 million, according to a SEC filing. But that announcemen came as the company’s stock was closingt at $1.69 per share. Shares have since fallenh and closed at 87 cents per share on After Tuesday’s joint venture and capitall infusion announcement, Novavax shares jumped 17 percenty and closed at $1.02 per share the first time shares closed above the $1 mark sincew Feb. 24. Company officials had said in Januaryu if they were unable to raise the capital Novavax could delay or reduce work on its research programs or potentiallhy cut more jobs and cost to stayin business.
It had already slashed 20 percent of its work force to reduc e spending by nearly 20 percentin 2009. “This allianc offers us the potential to accelerate the development of ourproductt candidates, explore promising new vaccine and introduce these products to one of the world’z fastest-growing medical markets,” said Rahul Singhvi, president and CEO of