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Novavax Reports Second Quarter 2011 Financial Results

ROCKVILLE, Md., Aug 5, 2011 (GlobeNewswire via COMTEX) --

Novavax, Inc. (Nasdaq:NVAX) today announced financial results for the second quarter ended June 30, 2011.

Novavax reported a net loss of $5.0 million, or $0.04 per share, for the second quarter of 2011 compared to a net loss of $8.9 million, or $0.09 per share, for the second quarter of 2010. For the six months ended June 30, 2011, the net loss was $12.4 million, or $0.11 per share, compared to a net loss of $19.2 million, or $0.19 per share, for the same period in 2010. The primary reason for the decreased loss for the second quarter of 2011 as compared to the same period in 2010 was higher revenue associated with the company's activities under its contract with the Office of Biomedical Advanced Research and Development Authority (BARDA) within the Office of the Assistant Secretary for Preparedness and Response at the U.S. Department of Health and Human Services (HHS), awarded in February 2011, as well as lower research and development spending to support the company's clinical trials related to its vaccine candidates.

Research and development expenses for the second quarter of 2011 were $5.6 million as compared to $6.3 million in the same period in 2010. General and administrative expenses were $3.3 million for the second quarter of 2011 as compared to $3.1 million in the same period in 2010.

As of June 30, 2011, the company had $22.3 million in cash, cash equivalents and short-term investments compared to $31.7 million as of December 31, 2010.

Second Quarter 2011 Highlights:

  --  Recorded revenue of $3 million for seasonal and pandemic influenza
      vaccine development work performed under the HHS BARDA contract
  --  Completed enrollment of a 150 subject Phase I clinical study of a novel
      vaccine candidate to prevent respiratory syncytial virus (RSV)
  --  Appointed new vice presidents of clinical and medical affairs,
      regulatory affairs and manufacturing; and
  --  Named biotechnology firm of the year by Tech Council of Maryland

"The award of the HHS BARDA contract and the expansion of our senior management team have strengthened our ability to advance our vaccine pipeline," said Stanley Erck, President and CEO of Novavax. "The BARDA relationship is off to a great start. During the coming months we look forward to initiating new clinical studies under the HHS BARDA contract as well as evaluating data from our first RSV clinical trial."

Conference Call

Novavax's management will host its quarterly conference call today at 10:00 a.m. EDT today. The live conference call will be accessible on Novavax's website at under "Investor/Events" or by telephone at 1 (877) 212-6076 (domestic) or 1 (707) 287-9331 (international). A replay of the webcast will be available on the Novavax website for 90 days after the call and a replay of the conference call will be available beginning today at 1:00 pm through November 2, 2011. To access the replay of the conference call, dial 1 (855) 859-2056 (domestic) or 1 (404) 537-3406 (international) and enter pass code 88315753.

About Novavax

Novavax, Inc. (Nasdaq:NVAX), a clinical-stage biopharmaceutical company, employs its cutting-edge technology to create next-generation vaccines to prevent serious infectious diseases, such as pandemic and seasonal influenza and respiratory syncytial virus (RSV). The company's proprietary virus-like-particle (VLP) technology and single-use bioprocessing system enable rapid vaccine development and production where and when they are needed, worldwide. The company has formed a joint venture with Cadila Pharmaceuticals, named CPL Biologicals, to develop and manufacture vaccines, biological therapeutics and diagnostics in India. Additional information about Novavax is available on the company's website:

Forward Looking Statements

Statements herein relating to future financial or business performance, conditions or strategies and other financial and business matters, including expectations regarding revenue, operating expenses, use of cash, clinical developments and other activities related to our VLP vaccines, are forward-looking statements. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include those identified under the heading "Risk Factors" in the Novavax Annual Report on Form 10-K for the year ended December 31, 2010, as updated by our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and filed with the Securities and Exchange Commission. We caution investors not to place significant reliance on the forward-looking statements contained in this release. These forward-looking statements speak only as of the date of this earnings release and Novavax assumes no duty to update such statements.

                                       NOVAVAX, INC.
                            CONDENSED STATEMENTS OF OPERATIONS
                       (in thousands, except per share information)

                                          Three Months Ended        Six Months Ended

                                              June 30,                  June 30,
                                       -----------------------  ------------------------

                                          2011         2010        2011         2010
                                       -----------  ----------  -----------  -----------
                                             (unaudited)               (unaudited)

  Revenue                                  $ 3,001         $ 7      $ 3,835        $ 117
                                       -----------  ----------  -----------  -----------

  Operating expenses:
   Research and development                  5,584       6,327       10,998       15,356

   General and administrative                3,338       3,148        6,188        5,683
                                       -----------  ----------  -----------  -----------

     Total operating expenses                8,922       9,475       17,186       21,039
                                       -----------  ----------  -----------  -----------
  Loss from operations                     (5,921)     (9,468)     (13,351)     (20,922)
  Interest income (expense), net                36          42           80           84
  Change in fair value of warrant
   liability                                 1,304         569        1,237        1,638
                                       -----------  ----------  -----------  -----------
  Loss from operations before income
   tax                                     (4,581)     (8,857)     (12,034)     (19,200)

  Income tax expense                           412     ―          412      ―
                                       -----------  ----------  -----------  -----------

  Net loss                               $ (4,993)   $ (8,857)   $ (12,446)   $ (19,200)
                                       ===========  ==========  ===========  ===========

  Basic and diluted net loss per
   share                                  $ (0.04)    $ (0.09)     $ (0.11)     $ (0.19)
                                       ===========  ==========  ===========  ===========
  Basic and diluted weighted average

  number of common shares outstanding      112,821     100,694      112,009      100,442
                                       ===========  ==========  ===========  ===========

                    (in thousands)

                                June 30,    December
                                  2011      31, 2010
                               -----------  --------
  Cash and cash equivalents       $ 13,092   $ 8,061
  Short-term investments             9,229    23,615
  Total current assets              28,416    33,337
  Working capital                   19,421    23,071
  Total assets                      69,346    74,844
  Total notes payable                  360       400
  Total stockholders' equity        56,271    59,050

This news release was distributed by GlobeNewswire,

SOURCE: Novavax, Inc.

CONTACT: Frederick W. Driscoll
VP, Chief Financial Officer and Treasurer
Novavax, Inc.

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