Novavax and Sanofi team up to bring Covid vaccine to market, collaborate on combination shots

Novavax Signs Multibillion-Dollar Deal with Sanofi

In a significant move for the pharmaceutical industry, Novavax announced on Friday a multibillion-dollar deal with French drugmaker Sanofi. The deal focuses on the co-commercialization of Novavax’s Covid vaccine starting next year, as well as the development of combination shots targeting both the coronavirus and the flu.

Novavax’s stock saw a massive spike of nearly 100% following the announcement of the deal, marking a turning point for the struggling vaccine maker. The agreement will also allow Novavax to lift its “going concern” warning, which had been issued due to doubts about the company’s ability to continue operating.

Part of the deal allows Sanofi to utilize Novavax’s Covid shot and flagship vaccine technology, the Matrix-M adjuvant, to develop new vaccine products. Sanofi will make an upfront payment of $500 million to Novavax, with additional payments for development, regulatory milestones, and launch milestones amounting to up to $700 million.

In addition to financial benefits, Novavax is entitled to royalty payments on Sanofi’s sales of its Covid vaccine and combination shots. Novavax will also receive launch and sales milestone payments of up to $200 million for each product developed with Matrix-M adjuvant.

The agreement also includes Sanofi taking a less than 5% stake in Novavax, further solidifying the partnership between the two companies. Novavax CEO John Jacobs expressed optimism about the deal, stating that it will help the company pivot its strategy towards bringing additional value to its stakeholders.

Furthermore, Jacobs emphasized that the agreement will enable Novavax to fulfill its mission of improving global public health with its vaccine technology platform. The deal provides Novavax with the resources and scope needed to accelerate its efforts in developing new vaccines and reaching a broader audience.

Overall, the collaboration between Novavax and Sanofi signifies a significant step forward in the fight against Covid and other infectious diseases. The partnership will not only drive innovation in vaccine development but also enhance accessibility and availability of life-saving vaccines on a global scale.

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