Q3 2020 Novavax Inc Earnings Call
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Ladies and gentlemen Chiefs conference is scheduled to begin shortly we compete.
Operator: Ladies and gentlemen, today's conference is scheduled to begin shortly. Please continue to stand by. Once again, today's conference is scheduled to begin shortly. Thank you for your patience. Ladies and gentlemen, thank you for standing by, and welcome to Novavax's third quarter 2020 financial results and operating highlights. At this time, all participants are in listen-only mode.
Once again todays conference is scheduled to begin shortly.
Thank you for your patience.
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I see this time all participants are in listen only mode.
Operator: After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to our speaker today, Senior Vice President, Investor Relations and Corporate Affairs, Sylvia Taylor. Thank you.
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Good afternoon, and thank you everyone, who has joined today's call to discuss our third quarter 2020 operational highlights and financial results.
Sylvia Taylor: Good afternoon, and thank you to everyone who has joined today's call to discuss our third quarter 2020 operational highlights and financial results. A press release announcing our results is currently available on our website at Novavax.com, and an audio archive of this conference call will be available on our website later today. Joining me today are Stan Burke, President and CEO, and John Trizzino, current Executive Vice President, Chief Financial Officer, and Chief Business Officer, who has been newly appointed to become Chief Commercial Officer and Chief Business Officer. Dr. Greg Glenn, President of R&D, and Dr. Filip Dubovsky, our recently promoted Executive Vice President and Chief Medical Officer, will be available for the Q&A section of today's call. Before we begin with prepared remarks, I need to remind you that we will be making forward-looking statements during this teleconference that could include financial, clinical, or commercial projections.
The press release announcing our results is currently available on our website at Novavax Dot Com and an audio archive of this conference call will be available on our website later today.
Joining me today are Stan Erck, President and CEO and John Trizzino current executive Vice President Chief Financial Officer, and Chief business Officer at newly appointed to be called Chief Commercial Officer, and Chief business Officer.
Sure, Greg Glenn President of R&D, and Dr., Philip Demosky, Our recently promoted executive Vice President and Chief Medical Officer will be available for the QNX section of todays call.
Before we begin with prepared remarks, I need to remind you that we will be making forward looking statements. During this teleconference that could include financial clinical or commercial projections.
Sylvia Taylor: Statements relating to future financial or business performance, conditions, or strategy, and other financial and business-related matters, including expectations regarding revenue, operating expenses, cash usage, clinical development, and anticipated milestones, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Novavax cautions that these forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time.
Statements relating to future financial sponsor business performance conditions or strategies, and other financial and business related matters.
<unk> expectations regarding revenue operating expenses cash.
Cash usage and clinical development and anticipated milestones are forward looking statements within the meaning of the private Securities Litigation Reform Act no.
No buybacks cautions that these forward looking statements are subject to numerous assumptions risks and uncertainties, which change overtime.
I would now like to hand, the call over Stan.
Sam: Thanks, Sylvia. Actually, before I begin, what I'd like to do is congratulate our colleagues at Pfizer. They had a great result.
Thanks Sheila.
Actually before I begin I'd like to do is just congratulations to our colleagues and Pfizer. They had a great result, they did a great job.
Sam: They did a great job. It's a remarkable effort on their part, and it's great for global health. It's great for the vaccine industry. And, truly, it's great for all the efforts of our colleagues developing the spike protein to stop the coronavirus pandemic. It shows that the vaccine will work. And congratulations to Pfizer.
It's a remarkable effort on their part and it's great for global Health, it's great for the vaccine industry average truly it's great for the all the efforts of our colleagues are developing spike approaching.
To stop the chrome barge fantastic it shows that the vaccine on work and congratulations pleasure.
Sam: So with that, in our third, and continuing through today, reflects the accelerated expansion of Novavax in every functional area. With the ongoing Phase III clinical trial in the UK, we are now just months away from phase III efficacy data for our COVID-19 vaccine. Last quarter's call, we detailed our clinical program and highlighted the substantial manufacturing and development agreements we've completed. We have made further progress in all these efforts for our COVID-19 vaccine, and we will be discussing those today. I'll start with an update on all of our COVID-19 vaccine activity in the quarter and recent weeks. And then, following that, I'll quickly provide an update on antipharmacy. John will then review the financials for the quarter.
So what's.
With that in our third quarter.
And continuing through the day, a reflection accelerated expansion of Novavax every functional area was the ongoing phase III clinical trial of UK. We're now just much away from phase three efficacy data for a cold mid ninetys actually on last quarter's call. We detailed our clinical program highlighted the substantial manufacturing and development agreements.
Completed we've made further progress in all these efforts for a cold at Nike vaccine and we will be discussing those today.
I'll start with an update on all of our COVID-19 vaccine exit activity in the quarter and in recent weeks following that I'll quickly provides an update on that.
John will then review the financials for the quarter. We will then take your questions.
Sam: We will then take your questions. As I'm sure you all know by now, after initiating early-stage development efforts in January of this year, we identified Novavax COVID-2373 as our lead vaccine candidate in April, and for simplicity, I will refer to our candidate as 2373 today. Following preclinical testing that demonstrated high immunogenicity, we quickly began clinical testing in a U.S.-Australian Phase I-II trial. In mid-August, we initiated a Phase IIb trial in South Africa, followed a week later by the initiation of the Phase II portion of the Phase I-II clinical trial in the U.S. and Australia. Last week, we presented preliminary favorable reactogenicity data from the phase two portion of the trial at the CDC's Advisory Committee on Immunization Practices, or ACIP.
As I'm sure you all know by now after initiating early stage development efforts in January of this year.
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23, 73 is our lead vaccine candidate in April and for simplicity I will refer to our carries 23 73 today.
In preclinical testing the demonstrated high Immunogenicity we quickly.
Quickly began clinical testing in the U.S., Australia phase one two trial in mid August we initiated a phase Twob trial in South Africa or a week later by the initiation of the phase two portion of the phase one two clinical trial the U.S. in Australia last.
Last week, we presented preliminary favorable reactogenicity data from the phase two portion of the trial at the Cdcs Advisory Committee on immunization practices were H. IP.
Sam: At the end of September, we initiated a Pivotal Phase III efficacy trial in the UK. Two weeks ago, we announced the expansion of this UK trial and that we are planning to begin enrolling patients into our US Pivotal Phase III clinical trial by the end of this month. So, as you can see, there's been a great deal of progress on the COVID-19 vaccine front since we embarked on this journey earlier this year. Now I'll dig into some specifics from our clinical program. Let's begin with our phase one trial. Data from this trial were published in early September in the New England Journal of Medicine. This publication detailed the distinctively strong immunogenicity and benign safety profile of our vaccine.
At the end of September we had.
She did a pivotal phase three efficacy trial of UK two.
Two weeks ago, we announced the expansion of this UK trial that we were planning to begin enrolling into our U.S. pivotal phase three clinical trial by the end of this month.
So all in all you can see there's been a great deal of progress of the cobot Nike's actually front since we embarked on this journey earlier this year.
Now I'll dig into some specifics from our clinical program.
Let's begin with our phase one trial data from this trial was published in early September in the New England Journal of Medicine.
Implication detailed the distinctively strong immunogenicity and benign safety profile of our vaccine.
With respect to the phase two trials as I mentioned earlier, we initiated a phase to be efficacy trial for <unk> 20, 373, South Africa in mid August in collaboration with Professor Shabir body.
Sam: With respect to the Phase II trials, as I mentioned earlier, we initiated a Phase IIb efficacy trial for 2373 in South Africa in mid-August in collaboration with Professor Shabir Mahdi at Wits University. Shabir is a well-known leader in running important global clinical trials over the years, and we are honored to have his support. This trial is being supported in part by a $15 million grant from the Bill & Melinda Gates Foundation. We recently expanded trial enrollment from 2,904 to 4,404 participants as of today, and we are more than 50% enrolled. There are two separate cohorts in the trial, and the first cohort will evaluate efficacy, safety, and immunogenicity in approximately 4,164 healthy adults, while the second will evaluate safety and immunogenicity in approximately 240 medically stable HIV-positive adults.
At University Shabir is a well known leader running global enterprise important global.
Well trials over the years and we were honored to have the support this.
This trial is being supported in part by a $15 million grant from the Bill Melinda Gates Foundation.
Recently expanded trial enrollment enrollment from 20 904 to 4404 participants as of today and we are more than 50% enrolled there.
Two separate cohorts in the trial and the first cohort will evaluate efficacy safety immunogenicity and approximately 4164 healthy adults well.
Well, the second will evaluate safety and Immunogenicity of approximately 240 medically stable HIV positive adults conducting this trial in South Africa allows us to evaluate 23 73 across a diverse representative study population includes an immunocompromised.
Sam: Conducting this trial in South Africa allows us to evaluate 2373 across a diverse representative study population that includes an immunocompromised population. The results of this trial will provide an invaluable indication of efficacy, in part due to the severity of the pandemic in South Africa. Also in August, we began rolling patients into the Phase 2 portion of our Phase 1-2 trial in the U.S. and Australia. The main goal here has been to expand on the initial safety and immunogenicity results but also to look for robust immune responses in older adults, a particularly vulnerable population in this disease. Among the 1,288 volunteers, approximately half are between the ages of 60 and 84. On October 30th, we presented a subset of data from this trial at the CDC's ACIP meeting. New data presented included blinded reactogenicity of the vaccine in adults older than 64 years of age. The benign reactogenicity profile in all age groups was consistent with the Phase I data.
The results of this trial will provide valuable indication of efficacy used in part due to the severity of the pandemic in South Africa.
Also in August we began enrolling patients in the phase two portion of our phase one two trial in the U.S. and Australia. The main goal here has been to expand on the initial safety and Immunogenicity results, but also to look for robust immune responses in older adults, particularly vulnerable population in this disease of the 1000.
288 volunteers approximately half are between the ages of 60 and 84.
On October Thirtyth, we presented a subset of data from this trial the Cdcs J.C.I.P. me no.
New data presented included blinded reactogenicity of the vaccine and adults older than 60 40 years of age the benign reactogenicity profile than all age groups was consistent with the phase one data.
Sam: Preliminary reactogenicity and immunogenicity data were reviewed by the FDA, and based on their review, we have been given permission to begin Phase III development in the U.S. In late September, we initiated the Phase III study of 2373, which is being conducted in the UK. As of today, the trial is more than 60% enrolled with approximately 9,000 individuals between the ages of 18 and 84, with and without relevant comorbidities. Additionally, 25% of the enrollees are above the age of 65, which means that we are meeting our original goal. We recently decided to expand the trial to 15,000 participants, which we expect to have enrolled by the end of this month. We believe this increased enrollment is likely to expedite the overall assessment of safety and efficacy. Additionally, up to 400 participants will also receive a licensed seasonal influenza vaccine as part of a co-administration subsidy. The UK trial protocol has a single primary endpoint, which is the first occurrence of PCR-confirmed symptomatic COVID-19. These data could serve as the basis for global licensing.
Luminary Reactogenicity, an immunogenicity data was reviewed by the FDA.
Based on their review, we've been given permission to begin phase three development in the U.S.
In late September we initiated the phase three study of 23, 73, which is being conducted in the UK as of today. The trial is more than 60% enrolled at approximately 9000 individuals between the ages of 18, and 84 with and without relevant co morbidities.
Only 5% of the enrollees are above the age of 65, which means we are meeting our original goal. We recently decided to expand the trial to 15000 participants, which we expect to have enrolled by the end of this month.
We believe this increase enrollment is likely to expedite the overall assessment of safety and efficacy.
Issuing up to 400 for settlements will also receive license seasonal influenza vaccine as part of a cold administration substrate.
UK trial protocol as a single primary endpoint, which is the first occurrence of PCR confirmed symptomatic COVID-19. These data could serve as the basis for global Leisinger UK Phase three protocol is posted on our website at Novavax Dot Com Flash resources.
And finally on the clinical front, we recently announced their plans to begin a pivotal phase three trial in U.S. slows in Mexico by the end of November.
Sam: The UK phase 3 protocol is posted on our website at Novavax.com slash resources. And finally, on the clinical front, we recently announced our plans to begin a pivotal phase 3 trial in the U.S., as well as in Mexico, by the end of November. We are actively working with the FDA to initiate this trial, supported by Operation Warp Speed. This trial is expected to enroll up to 30,000 participants with proportional representation among diverse populations most vulnerable to COVID-19, distributed across race and ethnicity, age, and those living with comorbidities. Like the U.K. trial, the U.S.
Actively working with the FDA to initiate this trial supported by Operation Operation Works Me. This trial is expected to enroll up to 30000 participants with proportional representation among diverse populations most vulnerable to call. The 19 distributed across race ethnicity age and those living with co morbidities like to you.
Okay trial, the U.S. phase three trial as a single primary endpoint, which will be the first occurrence of PCR confirmed symptomatic COVID-19.
While discussing U.S. development, our vaccine I also want to mention that 23 72 was recently granted fast track designation from the FDA, which we announced this morning in a press release.
We discuss the significant support Novavax received in terms of funding on our last call. As a reminder, build axis received commitments for over $2 billion in funding for cold at 19 vaccine development and manufacturing from operation Warp speed Sethi, the department of defense and the build out of the Gates Foundation.
Sam: The phase III trial has a single primary endpoint, which will be the first occurrence of PCR-confirmed symptomatic COVID-19. While discussing U.S. development of our vaccine, I also want to mention that 2373 was recently granted fast-track designation from the FDA, which we announced this morning in a press release. We discussed the significant support Novavax received in terms of funding on our last call. As a reminder, Novavax has received commitments for over $2 billion in funding for our COVID-19 vaccine development and manufacturing from Operation Warp Speed, STEPI, the Department of Defense, and the Bill and Melinda Gates Foundation. As I'm sure you all realize, this funding is crucial to our ability to move forward, and for which the company remains grateful. I'd like to spend a couple minutes discussing the status of our global manufacturer, 2373, and the supply agreements we have completed. Manufacturing continues to scale up.
As I'm sure you all realize this funding is crucial to our ability to move forward and for which the company remains Greg.
I'd like to spend a couple minutes discussing the status of our global manufacturing between 373, the supply agreements we have completed.
Manufacturing continues to scale up we anticipate manufacturing 23, 73, seven different countries in 2021 and ambitious that necessarily necessary goal given the pandemic we're faced.
Over the course of the third quarter, we establish unfilled several manufacturing collaborations and purchase agreement for 23 73 in August we entered into a development and supply agreement for the engine component of 23 73 with SK Bio Science in Korea. We also signed a letter of intent with Republic of Korea Ministry of Health and welfare in conjunction with.
SK biocides to help make the vaccine available in South Korea. This.
Disagreement boost the potential global supply that actually and this is an important component of our collaboration surfing.
In the same timeframe, we entered into an arrangement with the UK government for the purchase of 60 million doses of 23, 73 and support of our phase III clinical trial of UK.
Sam: We anticipate manufacturing 2373 in seven different countries in 2021, an ambitious but necessary goal given the pandemic we are facing. During the course of the third quarter, we established and built on several manufacturing collaborations and purchase agreements for 2370. In August, we entered into a development and supply agreement for the antigen component of 2373 with SK Bioscience in Korea. We also signed a letter of intent with the Republic of Korea's Ministry of Health and Welfare in conjunction with SK Bioscience to help make the vaccine available in South Korea. This agreement boosts the potential global supply of the vaccine and is an important component of our collaboration. In the same time frame, we entered into an arrangement with the U.K. government for the purchase of 60 million doses of 2373 and its support of our Phase III clinical trial in the U.K. Novavax has expanded its existing collaboration with Fujifilm, Diocent, and Biotechnologies to manufacture the antigen component of 2373 in the U.K. in This additional Fujifilm site is expected to produce approximately 180 million doses annually when it is fully online.
Novavax has expanded its existing collaboration with Fuji film diocesan biotechnology used to manufacture the antigen component of 23 73 UK. In addition to its manufacturing activities at sites in North Carolina and Texas. This.
This additional fujifilm site is expected to produce approximately 180 million doses annually when it is fully online.
In August we reached agreement in principle with the Canadian government to supply up to 76 million doses of 23 73, we expect to begin fulfilling its supply agreement in terms of second quarter of 2021.
September we amended our existing agreement with serum Institute of India, increasing our global manufacturing capacity to more than 2 billion doses annually. When all planned capacity has been brought on line, which we expect to happen by mid 2021.
Just last week, we announced an arrangement with the Australian government to supply 40 million doses of 23 73 started as early as the first half of 2021.
Overall, we have strategically enhance our manufacturing capacity over the course of 2020, we now have antigen production capacity in the fall.
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Through the serum Institute in Korea through SK Biocides stayed through BYOD bring in the Czech Republic through Novavax CZ.
Japan through Takeda UK Fuji film and then the U.S. through two facilities operated by Fuji film.
In addition on the edge of inside Novavax proprietary they could see a management is now being manufactured patter Swedish subsidiary Novavax AB agency biologics in the U.S., Denmark and that the polypeptide group in the U.S. upswing, which will manufacture to key intermediaries you should make a chip.
Sam: In August, we reached an agreement in principle with the Canadian government to supply up to 76 million doses of 2373 and expect to begin fulfilling its supply agreement as early as the second quarter of 2021. In September, we amended our existing agreement with Serum Institute of India, increasing our global manufacturing capacity to more than 2 billion doses annually when all planned capacity has been brought online, which we expect to happen by mid-2021. Just last week, we announced an arrangement with the Australian government to supply 40 million doses of 2373 starting as early as the first half of 2021. Overall, we have strategically enhanced our manufacturing capacity over the course of 2020. We now have antigen production capacity in the following locations: in India, through the Serum Institute; in Korea, through SK Bioscience; in Spain, through BioFabri; and in the Czech Republic, through Novavax CZ. Japan through Takeda, in the UK through Fujifilm, and in the US through two facilities operated by Fujifilm.
With our continued progress.
Taken steps to grow our physical footprint as well, we recently announced the expansion of our Maryland campus to support global vaccine development. We are at least an approximately 170000 square feet in Gaithersburg, Maryland for manufacturing R&D and general operational purposes, which is expected to be ready for use in early 2021.
We also purchased attend acre parcel of land also in Gaithersburg, Maryland for future development to accommodate our expected growth.
I would now like to turn.
Now I'd like to provide a brief update on our other cornerstone program Nanofluid.
Earlier this year in March we announced the successful completion of Nanofluid pivotal phase three clinical trial and our attention to seek regulatory approval from Usfifty eight under the accelerated approval pathway.
As we announced last March.
Sorry last month, we formed a leadership team that will advance nanofluid to regulatory licensure.
He will also explore the potential of our respiratory vaccine portfolio.
Develop a regulatory and commercial plan for NAND flu Standalone vaccine bore as a combination respiratory vaccine was either Colin or.
RSV for both.
Sam: In addition, on the adjuvant side, Novavax's proprietary MatriChem adjuvant is now being manufactured at our Swedish subsidiary, Novavax AB, AGC Biologics in the U.S. and Denmark, and at the Polypeptide Group in the U.S. and Sweden, which will manufacture two key intermediaries using MatriChem. With our continued progress, we have taken steps to grow our physical footprint as well. We recently announced the expansion of our Maryland campus to support global vaccine development. We are leasing approximately 170,000 square feet in Gaithersburg, Maryland, for manufacturing, R&D, and general operational purposes, which is expected to be ready for use in early 2021. We also purchased a 10-acre parcel of land, also in Gaithersburg, Maryland, for future development to accommodate our expected growth.
The effort is being led by Rick Wilson as well as several other novavax veterans, who have been involved in leading Nanofluid program.
I also want to highlight that our phase two nanofluid data was recently published in clinical infectious disease.
Publication is posted on our website at Novavax Dot com slashed publication.
So before I hand, it over to John I want to quickly highlight recent updates regarding our board and leadership team. We are pleased to add Greg often to our board of directors, Greg brings extensive industry experience and leadership to novavax, including more than 20 years of Gilead Sciences, where he served in an array of rules.
Chief He should officer leadership of commercial operations in Europe, Asia, Latin America, and Africa, as well as government Affairs Public Affairs Global Medical Affairs General Counsel and Chief compliance Officer.
Additionally, we are excited to announce Greg Covino lose joining next week as Chief Financial Officer. Gregg was most recently group CFO juice can use to sorrow oncology division, having served as Tesaros, SVP and Chief accounting officer prior to the acquisition.
This appointment John Trizzino previously held both the CFO and Chief business Officer growth will continue to serve as Chief business Officer, and also assumed the newly created role of Chief Commercial officer I'd like to thank John for taking on the CFO role getting us to the strong financial position the whole today.
Sam: I would now like to provide a brief update on our other cornerstone program, NanoFlu. Earlier this year, in March, we announced the successful completion of NanoFlu's Pivotal Phase III clinical trial and our intention to seek regulatory approval from the U.S. FDA under the Accelerated Approval Pathway. As we announced last March, As of, sorry, last month, we formed a leadership team that will advance nanofluid to regulatory licensure. The team will also explore the potential of our respiratory vaccine portfolio and develop a regulatory and commercial plan for NanoFlu as a standalone vaccine or as a combination respiratory vaccine with either COVID or RSV or both. The effort is being led by Rip Wilson as well as several other Novavax veterans who have been involved in leading the NanoFlu program. I also want to highlight that our Phase II nanofluid data was recently published in Clinical Infectious Disease.
I'd also like to highlight two recent promotions first built to Boston MD has been promoted to executive Vice President Chief Medical Officer, and BC Lee has been promoted to senior Vice President Chief Information Officer, both and played important parts and our recent success and I. Thank them for their efforts and with that I'll have John provides the financial result.
Thank you Stan.
Today, we announced the financial results for the third quarter and first nine months of 2020.
Given our focus on 23 73 developments come a significant amount of grant funding to support its development and mix comparison to last year to not be material irrelevant. So therefore, I will focus most of my comments on the third quarter 2020 results all that.
For the third quarter, we reported a net up or a net loss of 197.3 million or $3.21 per share.
Revenue in the quarter was 157 million and was primarily the result of services performed under our participation and operation Warp speed, except the agreement and the department of defense contract.
Sam: This publication is posted on our website at novavax.com slash publication. So before I hand it over to John, I want to quickly highlight recent updates regarding our board and leadership team. We're pleased to add Greg Alton to our board of directors. Greg brings extensive industry experience and leadership to Novavax, including more than 20 years at Gilead Sciences, where he served in an array of roles, including chief patient officer, leadership of commercial operations in Europe, Asia, Latin America, and Africa, as well as government affairs, public affairs, global medical affairs, and general counsel and chief compliance officer. Additionally, we are excited to announce Greg Covino, who is joining next week as Chief Financial Officer. Greg was most recently Group CFO at GSK's Tesoro Oncology Division, having served as Tesoro's SVP and Chief Accounting Officer prior to the acquisition. With this appointment, John Trizzino, who previously held both the CFO and Chief Business Officer roles, will continue to serve as Chief Business Officer and also assume the newly created role of Chief Commercial Officer.
We recognize revenue as we complete services under our funding agreements and also report expenses as incurred.
R&D expenses were $294.1 million in the third quarter of 2020.
These expenses were primarily related to development activities of 23 73.
And included approximately 122 million of non cash expense into that in the period that related to embedded leases under U.S. accounting principles.
It is important to highlight this accounting treatment given its impact to total operating expenses for the quarter.
Excluding this charge from total operating expenses brings our R&D expenses in line with revenue.
Julian expenses were $56.9 million in the third quarter of 2020.
That's just from the quarter were primarily from increased employee stock based compensation expense and increased professional fees related to the integration of Novavax CZ and supporting our 23 survey free program.
Sam: I'd like to thank John for taking on the CFO role and getting us to the strong financial position we hold today. I'd also like to highlight two recent promotions. First, Filip Dubovsky, M.D., has been promoted to Executive Vice President, Chief Medical Officer, and B.C. Lee has been promoted to Senior Vice President, Chief Information Officer.
As of September Thirtyth play 20, no. That's at 571.6 million in cash cash equivalents marketable securities and restricted cash.
Net cash provided by operations for the first nine months of 2020 was 86 million compared to net cash used in operation activities of $112.9 million for the same period in 2019.
Sam: Both have played important roles in our recent success, and I thank them for their efforts. And with that, I'll have John provide the finances. Thank you, Sam.
During this quarter, we raised $53.3 million in net proceeds through our ATM offerings for a total of approximately 445.6 million since the beginning of the year.
John: Today we announce the financial results for the third quarter and first nine months of 2020. Given our focus on 2373 development and the significant amount of grant funding to support its development, comparisons to last year are not materially relevant, so I'll focus most of my comments on the third quarter 2020 results only. For the third quarter, we reported a net loss of $197.3 million, or $3.21 per share.
In addition in the second quarter of 2020, we entered into an agreement to sell series a convertible preferred stock convertible into 4.4 million shares of common stock to an investment funds affiliated with our capital in a private placement we.
We received gross proceeds of $200 million.
That concludes my financial review I'll now turn it back to Stan.
Thanks, John 2020 continues to be a productive year for no action. The third quarter, we took big steps toward achieving our goals with both our COVID-19 vaccine program and Nanofluid, we expect quarter four to be no different.
As we head into 2021, we will continue to rise to the challenge presented to us that strengthen a record of executing delivery. We look forward to keeping you updated on milestones and development across all of our programs as always I would like to express my gratitude to the entire novavax team as well as our collaboration partner.
John: Revenue in the quarter was $157 million and was primarily the result of services performed under our participation in Operation Warp Speed, the CEPI Agreement, and the Department of Defense contract. We recognize revenue as we complete services under our funding agreements and also record expenses as incurred. R&D expenses were $294.1 million in the third quarter of 2020. These expenses were primarily related to development activities of 2373 and included approximately $122 million of non-cash expense in the period that related to embedded leases under U.S. accounting principles.
We'll make all this possible.
Tireless efforts in this critical period have been invaluable all of US here at Novavax are honored to be part of the solution to one of the most significant public health events of our lives and with that I'll turn it back over to the operator for today operator.
As a reminder to ask the question you will need to press star one on your telephone.
To read there are your question press the pound.
Some fine when we combine the kidney roster.
Please wait like college, Keith with your question.
John: It is important to highlight this accounting treatment given its impact on total operating expenses for the quarter. Excluding this charge from total operating expenses brings our R&D expenses in line with revenue. G&A expenses were $56.9 million in the third quarter of 2020. The expenses from the quarter were primarily from increased employee stock-based compensation expense and increased professional fees related to the integration of Novavax CZ and supporting our 2373 program. As of September 30, 2020, Novavax had $571.6 million in cash, cash equivalents, marketable securities, and restricted cash. Net cash provided by operations for the first nine months of 2020 was $86 million compared to net cash used in operating activities of $112.9 million for the same period in 2019.
One moment.
Again, ladies and gentlemen, if you have a question at this time. Please press part because number one key on your tax downtown Crown.
I am showing no.
Questions at this time I would not like to see the conference back just partner.
All right well. Thank you. It appears we don't have questions or the question.
System isn't working right now, but if we have no questions.
I'm happy to be able to present, our quarter, two and a great quarter.
And.
We continue to keep you updated thank you very much.
John: During this quarter, we raised $53.3 million in net proceeds through our ATM offerings for a total of approximately $445.6 million since the beginning of the year. In addition, in the second quarter of 2020, we entered into an agreement to sell Series A convertible preferred stock, convertible into 4.4 million shares of common stock, to an investment fund affiliated with RA Capital in a private placement. We received gross proceeds of $200 million.
Ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
[music].
Sam: That concludes my financial review, and I'll now turn it back. Thanks, John. 2020 continues to be a productive year for Novavax. In the third quarter, we took big steps toward achieving our goals in both our COVID-19 vaccine program and nano. We expect quarter four to be no different. As we head into 2021, we will continue to rise to the challenge presented to us and look to strengthen our record of execution and delivery. We look forward to keeping you updated on milestones and developments across all of our programs. As always, I would like to express my gratitude to the entire Novavax team, as well as our collaboration partners who make all of this possible. Their tireless efforts in this critical period have been invaluable. All of us here at Novavax are honored to be part of the solution to one of the most significant public health events of our lives. And with that, I'll turn it back over to the operator for Q&A. Operator?
Operator: As a reminder, to ask a question, you will need to press star 1 on your telephone. To withdraw your question, press the pound. Please stand by while we compile the Q&A. Please wait while callers queue for their questions. One moment, please. Again, ladies and gentlemen, if you have a question at this time, please press star. It is the number one key on your touchtone telephone. I am showing no questions at this time. I would not like to turn the conference back on this time.
Sam: All right. Well, thank you. And Pierce, we don't have questions or the question...
Sam: The system isn't working right now, but if we have no questions, I'm happy to be able to present our quarter to you. We had a great quarter, and we'll continue to keep you updated. Thank you very much. Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.