Vaccine maker reports 170% increase in total revenues during first quarter.

2004 JUN 2 - (NewsRx.com & NewsRx.net) -- Novavax, Inc., (NVAX) announced its financial results for the first quarter ended March 31, 2004.

Total revenues for the first quarter ended March 31, 2004, rose 170% to $3.2 million compared to first quarter 2003 revenues of $1.2 million. Revenues for the first quarter included $2.2 million of product sales compared to $0.9 million in the prior-year period, a $1.3 million or 144% increase. The increase in product sales was primarily due to the introduction of Novavax's two new prenatal vitamin products. Revenue from research and development contracts increased to $960,000 in the quarter from $204,000 in the first quarter of 2003 driven by revenue recognized on new contracts with the National Institutes of Health related to research on HIV vaccine development.

Operating expenses for the 3 months ended March 31, 2004, were $8.1 million, an increase of $1.5 million, or 23%, from $6.6 million in the same period in 2003. Selling and marketing costs were $2.8 million compared to $2.2 million incurred for the same period in 2003, an increase of 29% or $618,000. This increase reflects higher costs associated with the preparation to launch ESTRASORB, including advertising, promotions, market research, samples, sales representative training, and the addition of marketing personnel.

General and administrative expenses in the quarter were $2.0 million compared to $1.8 million for the first quarter of 2003, an increase of 10% which reflects personnel additions to Novavax's infrastructure. Research and development expenses were $3.0 million in the first quarter of 2004 compared to $2.4 million in the prior-year period, an increase of 29%. This increase was primarily due to expenditures to prepare the Philadelphia, Pennsylvania manufacturing facility for the product launch of ESTRASORB.

The net loss for the first quarter of 2004 was $5.3 million, or $0.15 per share, compared to a net loss of $5.8 million, or $0.22 per share, for the first quarter of 2003. The decrease in the net loss was primarily related to the increase in revenue, partially offset by increased expenses. Average shares outstanding for the current quarter were 34.7 million compared to 27.0 million in the comparable quarter of 2003, primarily due to Novavax's private placement of ...