Novavax has signed a multibillion-dollar deal with Sanofi to co-commercialize its Covid vaccine, as well as develop combination shots targeting both the coronavirus and the flu. This agreement is a significant turning point for Novavax, as it will allow the company to lift its “going concern” warning, which had been issued due to doubts about its ability to continue operating. Shares of Novavax saw a significant increase on Friday following the announcement of the deal, signaling investor confidence in the company’s future.
The licensing agreement with Sanofi will also allow the French drugmaker to use Novavax’s Covid shot and flagship vaccine technology, Matrix-M adjuvant, to develop new vaccine products. Sanofi will make upfront and milestone payments to Novavax, as well as royalty payments on sales of its Covid vaccine and combination shots targeting the coronavirus and the flu. Additionally, Sanofi will take a less than 5% stake in Novavax as part of the deal.
Novavax CEO John Jacobs highlighted the benefits of the partnership with Sanofi, stating that it will help the company fulfill its mission of improving global public health by allowing them to scale their vaccine technology platform at a pace that would not have been possible on their own. The deal also gives Novavax the opportunity to pivot their strategy towards activities that bring additional value to their shareholders and stakeholders.
Under the terms of the deal, Novavax will lead the commercialization of its Covid shot for the remainder of this year before transferring most of that responsibility to Sanofi in 2025. Sanofi will not oversee commercialization in countries where Novavax has existing partnership agreements, ensuring that the company retains control in key markets. The agreement also allows Sanofi to develop combination products that include Novavax’s Covid jab alongside its flu vaccine or other in-house vaccines.
Jacobs noted that the partnership with Sanofi will help expedite the development of new vaccines, as Sanofi’s expertise and resources will enhance Novavax’s ability to reach a larger patient population. The deal also opens up opportunities for Novavax to explore new vaccine combinations and expand its product pipeline. Additionally, apart from the agreement with Sanofi, Novavax plans to conduct a late-stage trial on its own combination vaccine targeting Covid and the flu, as well as a stand-alone flu shot later this year, further expanding its portfolio.
Ultimately, the collaboration between Novavax and Sanofi represents a significant milestone for both companies and the global public health community. By leveraging each other’s strengths and resources, they aim to bring new vaccines to market more quickly and effectively, broadening patient access to much-needed vaccine options. The partnership is expected to have a positive impact on Novavax’s financial health and strategic direction, positioning the company for long-term success in the competitive vaccine market.
