Maryland's Novavax to lay off workers amid promising new vaccine data

GAITHERSBURG, Md. — A biotechnology company based in Gaithersburg, Maryland announced it will lay off 25% of its workforce as part of a global restructuring plan.

In a release, the vaccine making company explained the layoffs are being made in an effort to significantly reduce costs and refocus on top priorities.

This comes as the COVID public health emergency comes to an end this week.

"Today we outlined significant measures intended to reduce spend, extend our cash runway, and operate more efficiently. Combined with our focus on revenue generation from Nuvaxovid™ and management of our current liabilities, these measures should strengthen our cash position and our potential for the long-term growth and stability of Novavax," said John C. Jacobs, President and Chief Executive Officer, Novavax.  

Novavax also revealed it is working on an updated COVID vaccine for the fall in the release. In addition to a flu and COVID shot combination.

Jacobs added, "We also made significant progress on our other key priorities, including our efforts to deliver an updated COVID vaccine for the Fall season. And, today we announced positive Phase 2 data that we believe supports the further development of our combination COVID-influenza, standalone influenza, and high-dose COVID vaccines."

The restructuring of the company will not only eliminate jobs, but it will reduce funding for research and development.

Its global restructuring plan is expected to reduce the company's annual expenses by up to 50%, officials claim.

Novavax also announced it will consolidate facilities.

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