Novavax (NVAX 2.53%) investors have been on edge ever since the company fell behind in the coronavirus vaccine race. To make matters worse, earlier this year, Novavax even questioned its ability to continue operations. But in the first-quarter earnings call this week, new CEO John C. Jacobs offered investors reason for hope.

Jacobs revealed details about his strategy to cut costs, manage cash flow, and match Novavax's size to the demand for its only product: the coronavirus vaccine. As part of the plan, Novavax aims to slash 25% of its workforce. At the same time, the company reported solid data for a potential vaccine that could dominate in a post-pandemic world.

Let's find out more -- and what all of this means for investors.

A late entrance

Novavax's late entrance to the billion-dollar vaccine market means it missed out on the lion's share of revenue. This made it difficult for the biotech to maintain the massive infrastructure it built out to produce and commercialize the vaccine. And it also resulted in fewer resources to usher newer candidates through development.

Rivals Moderna and Pfizer have benefited from more than two full years of revenue in the U.S. market -- and during most of this time, the pandemic was raging. U.S. regulators only gave Novavax the nod last July. And as we move toward a post-pandemic situation, vaccine demand is declining.

That's why Novavax's Jacobs now is putting into place elements he says should help the biotech continue operations over the coming 12 months. As mentioned, the company will cut its workforce as part of an effort to reduce Novavax's size to better fit today's vaccine demand. About 80% of those losing their jobs are full-time employees. As part of this downsizing effort, Novavax is also consolidating its facilities.

These and other efforts should cut expenses -- this includes research and development, as well as selling, general, and administrative -- in the range of 40% to 50% next year. That's compared to last year. Jacobs and his team also reduced Novavax's outstanding current liabilities by $541 million in the first quarter and by another $140 million in April. The CEO predicts as much as $1.6 billion in total revenue this year.

In the lead on a potential combined vaccine

Meanwhile, Jacobs announced positive phase 2 results from the company's combined coronavirus/flu vaccine candidate. Novavax was the first to launch a combined program. And it has an advantage over Moderna -- which also is developing a combined candidate.

Novavax already had brought separate flu and coronavirus candidates successfully through development before working on an investigational combined vaccine. Novavax also remains a step ahead of Moderna from a timeline perspective.

What could delay the program at this point is funding. But Jacobs, who joined Novavax in late January, is showing investors he's quick to take action and tackle problems. We can see this in the strategy he outlined this week.

Regarding the combined vaccine candidate, Jacobs said, "We will evaluate our options to advance this program through strategic collaborations and/or other financing alternatives." Jacobs pledged to do this once the full trial data set is ready.

What does this mean for investors?

Jacobs clearly isn't wasting time when it comes to putting Novavax on the road to recovery. He's placing the focus on keeping costs in check and also preparing for the fall booster market. He even announced $800 million in advance purchase agreements outside the U.S.  

At the same time, he aims to try to find a way to fund the potential combined vaccine -- which could be a big winner in a post-pandemic environment.

All of this is positive -- and means Novavax is a great stock to watch. If Jacobs continues along this path and certain outside elements go Novavax's way, the company might recover and even thrive down the road.

Still, the stock remains very risky today. Some things will be out of Jacobs' control and could play a big role in determining the company's fate. For example, will Novavax be able to carve out market share during the upcoming fall vaccination season?

This means I would hold off on buying Novavax shares now -- but I would remain hopeful and closely watch Jacobs' next moves.