Novavax shares soared over 130% after striking a lucrative licensing deal with Sanofi, worth up to $1.2 billion, to commercialize its struggling Covid-19 vaccine and collaborate on a combined shot with flu. The agreement not only boosted Novavax’s stock price but also removed a previous “going concern” notice that had been looming over the biotech company.
Sanofi, a major player in the vaccine market, will lead the sales efforts for Novavax’s Covid jab in most countries, while also gaining the rights to combine Novavax’s protein-based vaccine technology with its flu shots and other infectious disease vaccines. This partnership marks a significant move in the post-pandemic vaccine landscape, where companies are increasingly focusing on combined shots against multiple infectious diseases.
The deal includes an upfront payment of $500 million in cash and equity investment for Novavax, with the potential for an additional $700 million based on regulatory and development milestones. Sanofi will also take a 5% stake in Novavax and the majority of revenues from the sales of any combined shots using Novavax’s technology.
“We’re excited by the prospect of combining Novavax’s adjuvanted Covid-19 vaccine with our differentiated flu vaccines to offer enhanced convenience and protection against two serious respiratory viruses,” said Jean-François Toussaint, head of Sanofi’s vaccine research and development.
Novavax, which faced a tumultuous period with a sharp decline in market value, is now in a stronger position to refocus its efforts on developing a combined Covid-flu shot. The company’s CEO, John Jacobs, expressed optimism about leveraging their technology platform and novel adjuvant to drive future success. With the combined expertise of Novavax and Sanofi, the future looks promising for the development of innovative and effective vaccines.