Biotech
Friday, May 10th, 2024 3:21 pm EDT
Key Points
- Novavax and Sanofi have entered a multibillion-dollar deal to co-commercialize Novavax’s Covid vaccine and collaborate on developing combination shots for Covid and flu, signaling a significant turning point for Novavax and its protein-based Covid shot.
- The agreement provides substantial financial support to Novavax, enabling it to lift its “going concern” warning, with Sanofi paying an upfront amount of $500 million and potentially up to $700 million in milestone payments. Novavax will also receive royalty payments and additional milestone payments for products developed with its Matrix-M adjuvant, with Sanofi acquiring a less than 5% stake in Novavax.
- Novavax will lead the commercialization of its Covid shot for the remainder of 2024, with Sanofi gradually assuming responsibility in 2025. Additionally, the deal allows for the development of combination vaccines and leverages Sanofi’s expertise and resources to expedite the introduction of multiple new vaccines.
Novavax announced a significant breakthrough in its partnership with Sanofi, a French pharmaceutical giant, sealing a multibillion-dollar deal to co-commercialize Novavax’s Covid vaccine and to jointly develop combination shots addressing Covid and flu, among other endeavors. The agreement marks a pivotal moment for Novavax, which saw its shares surge by over 130% on Friday. This deal not only lifts Novavax’s “going concern” warning, which had been lingering since February 2023 due to operational doubts, but also underscores the recognition of its protein-based Covid vaccine as a valuable alternative to mRNA vaccines. Under the terms, Sanofi gains access to Novavax’s Covid shot and Matrix-M adjuvant technology, with an upfront payment of $500 million and potential milestone payments totaling up to $700 million for development, regulatory approvals, and launch milestones. Novavax will receive royalties on Sanofi’s sales of its Covid vaccine and combination shots, along with additional milestone payments and royalties for each product developed using Matrix-M adjuvant. Sanofi will also acquire a less than 5% stake in Novavax, solidifying the collaboration’s financial framework. Novavax CEO John Jacobs expressed optimism about the deal’s transformative impact on the company’s trajectory, providing capital, resources, and opportunities to amplify its vaccine technology platform on a global scale. Moreover, Novavax will lead the commercialization of its Covid shot for the remainder of 2024, with Sanofi gradually assuming responsibility in 2025, excluding regions where Novavax already has partnerships or advanced purchase agreements. Jacobs highlighted the potential market expansion and enhanced patient access to Novavax’s vaccine through Sanofi’s established commercialization capabilities. Additionally, the collaboration paves the way for the development of combination vaccines integrating Novavax’s Covid shot with Sanofi’s flu vaccines, with Sanofi taking the lead in their development and commercialization. Jacobs emphasized the accelerated development timelines facilitated by partnering with Sanofi, highlighting the potential for multiple new vaccines to emerge swiftly. Independently, Novavax anticipates commencing late-stage trials for its combination Covid and flu vaccine, as well as its standalone flu shot later this year, diversifying its pipeline and leveraging the freed resources from the collaboration with Sanofi.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/10/novavax-and-sanofi-to-commercialize-covid-vaccine-develop-combo-shots.html
