Sanofi and Novavax signed a licensing agreement that includes commercialising a combined Covid-19 and flu shot.
Novavax will receive US$500 million in upfront payments as well as US$700 million in development, regulatory and launch milestones, according to a statement on Friday (May 10). Sanofi is also taking a minority equity stake of about 5 per cent in Novavax.
Novavax shares surged as much as 217 per cent in premarket trading before paring those gains to about 130 per cent. The company’s stock was down about 50 per cent in the past year through Thursday’s close.
The pact links two big players in the vaccine world that both missed out on the rush to develop and commercialise Covid shots quickly during the pandemic. Amid various setbacks, Sanofi and Novavax ceded tens of billions of dollars in sales to nimbler messenger-RNA developers including the Pfizer-BioNTech alliance and Moderna.
Now, Sanofi will have the rights to drive sales of Novavax’s Covid-19 shot worldwide from next year, except for in India, Japan and South Korea, where Novavax already has advance purchasing agreements.
The French drugmaker also has the sole licence to use Novavax’s protein-based Covid shot in combination with its flu shot, which it said will offer patients “enhanced convenience and protection against two serious respiratory viruses.”
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sanofi will also have a non-exclusive licence to use Novavax’s Matrix-M adjuvant in other vaccine products. Novavax will still have the right to develop its own combined Covid-flu vaccine at its own cost.
The deal is a boost for Novavax which is in the midst of restructuring its business after a difficult 2023 when it had to issue a going concern warning about its ability to continue operating.
Novavax reported a first-quarter net loss of US$148 million, compared with a US$294 million loss a year earlier. BLOOMBERG
