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Novavax raised doubts about the feasibility of continuing its business after struggles in rolling out its coronavirus jab although it has enough money to fund operations.
The COVID-19 vaccine maker, which described the situation as "subject to significant uncertainty," also announced plans to cut spending
On Tuesday, the company reported a loss of $182 million in the fourth quarter, after posting weaker sales than expected at $357 million.
Consequently, Novavax shares plummeted 25 percent in extended trading.
Novavax is currently gearing up for a fall vaccination campaign and said it plans to focus on delivering an updated COVID-19 vaccine.
The Maryland-based Novavax was an early frontrunner in the global vaccine race but fell behind after being hit by manufacturing and regulatory delays.
The company faced delays in regulatory submissions for its jab, which was only authorized in the US in July last year.
Before that, it received authorization from the European Union, United Kingdom, Canada, and Australia.
