Novavax and French pharmaceutical giant Sanofi reach US$1.4 billion cooperation agreement, share price more than triples

Novavax (NVAX-US) announced a $1.4 billion collaboration agreement with French pharmaceutical giant Sanofi.

Novavax (NVAX-US) announced a $1.4 billion collaboration agreement with French pharmaceutical giant Sanofi.
Stimulated by this news, Novavax Pharmaceuticals surged 217% before the U.S. stock market opened.
After the opening, the stock price continued to soar, but the gains moderated. It once rose by more than 140% during the session.
The cooperation agreement will allow troubled Novavax Pharmaceuticals to lift its previously issued performance warning.
The company warned last year that plummeting sales of its coronavirus vaccine could lead to bankruptcy.
According to the agreement, the two parties will jointly commercialize Novavax\’s COVID-19 vaccine starting next year and jointly develop a combined coronavirus and influenza vaccine.
Under the agreement, France-based Sanofi agreed to pay $500 million upfront and make additional payments of up to $700 million upon achievement of development, regulatory and launch milestones.
Novavax will also be entitled to $200 million in additional launch and sales milestone payments and double-digit royalties from Sanofi\’s use of its Matrix-M adjuvant technology to develop the vaccine; immune response.
Sanofi will also hold less than 5% of Novavax.
The terms of the deal see Novavax set to lead the commercialization of its coronavirus vaccine by the end of this year and hand over most responsibility to Sanofi in 2025.
Sanofi will not be involved in overseeing commercialization in countries with existing collaboration agreements with Novavax; these include India, Japan and South Korea, as well as countries with which the company has purchase agreements for its COVID-19 vaccine.
Novavax Chief Executive John Jacobs said in a statement that the deal, worth more than twice the company\’s $628 million market capitalization, represented \”the beginning of an exciting new chapter\” for the company.
The Sanofi deal is a major boost for Novavax.
Novavax\’s sales have plummeted over the past two years as demand for its COVID-19 vaccine plummets.
In February 2023 the company said it had \”deep doubts\” about its ability to continue operating.
John Jacobs said the transaction will bring sufficient capital to Novavax Pharmaceuticals to enable it to continue operating and the opportunity to shift its strategy more towards what it does best to create more value for all stakeholders, including shareholders. .
In addition, the transaction will support the company\’s mission of improving global public health with its vaccine technology platform, which is difficult to achieve with the company\’s own resources alone.
John Jacobs believes that Sanofi\’s participation as a large pharmaceutical company will increase the market share and visibility of Novavax\’s new crown vaccine and thus expand patients\’ access to the vaccine.
Sanofi will also be responsible for developing and commercializing any combination products containing its influenza vaccine and Novavax\’s COVID-19 vaccine.
Jean-Francois Toussaint, global head of vaccine research and development at Sanofi, said: “With influenza and COVID-19 hospitalization rates now very close, we have the opportunity to develop a non-mRNA influenza and COVID-19 combination vaccine to provide more convenient services for patients and protect against two serious diseases. Respiratory viruses provide protection.

Like (0)
Previous May 10, 2024 4:13 pm
Next May 10, 2024 4:13 pm

Related posts