Rockville, Maryland-based Novavax has laid off 18 employees, about 20 percent of its workforce. The restructuring will cost the company $190,000, but according to its latest SEC filing, the cuts are expected to reduce overall operating expenses by 20 percent. The clinical stage biotech company said it's focusing its resources on advancing lead programs and developing partnerships.
Novavax completed a Phase I/IIa trial for its pandemic flu vaccine in August and hopes to partner the program. Although no details have been released, Len Stigliano, VP and Chief Financial Officer, tells FierceBiotech that Novavax is in talks with governments around the world. The company is exploring options to partner with governments or overseas companies to "give them the wherewithal to make their own vaccines and protect their citizens," he explained. Novavax's seasonal flu vaccine also achieved positive results in a Phase IIa trial in December, but the company plans to further advance the program before seeking partners.
Also in the pipeline are vaccine candidates for respiratory syncytial virus and Varicella Zoster (shingles). The RSV vaccine will undergo more preclinical trials this year with the goal of advancing it to human trials next year. The company hopes to advance the shingles vaccine to preclinical studies this year as well.
In addition to planned layoffs, Novavax will also be losing Stigliano, who joined the company in 2007 as Interim CFO. According to Stigliano, the company will likely hire a consultant to operate as CFO until a permanent replacement is hired.