Novavax signed a multibillion-dollar deal with Sanofi to co-commercialize its Covid vaccine starting next year and develop combination shots targeting the coronavirus and the flu. This agreement allowed Novavax to lift its “going concern” warning, marking a turning point for the struggling vaccine maker. Shares of Novavax surged nearly 100% higher on the news of the deal. The licensing agreement will also allow Sanofi to use Novavax’s Covid shot and Matrix-M adjuvant technology to develop new vaccine products.
Sanofi will pay Novavax an upfront payment of $500 million and up to $700 million in payments for development, regulatory, and launch milestones. Novavax will receive royalty payments on Sanofi’s sales of its Covid vaccine and combination shots, along with additional launch and sales milestone payments of up to $200 million for each product developed with Matrix-M adjuvant. Sanofi will also take a less than 5% stake in Novavax as part of the deal. This partnership will help Novavax fulfill its mission of improving global public health by leveraging Sanofi’s resources and expertise.
Novavax will lead the commercialization of its Covid shot for the rest of this year and transfer most of that responsibility to Sanofi in 2025. Sanofi will not oversee commercialization in countries where Novavax has existing partnership agreements, including India, Japan, and South Korea. Sanofi can also develop products that combine its flu shot or other vaccines with Novavax’s Covid jab, using the Matrix-M adjuvant technology. Sanofi will be solely responsible for the development and commercialization of any combination shot containing its flu vaccine and Novavax’s Covid shot.
The agreement with Sanofi will allow Novavax to accelerate the development of multiple new vaccines much more quickly. Novavax plans to start a late-stage trial on its own combination vaccine targeting Covid and the flu, as well as its stand-alone flu shot later this year. This trial was initially expected to include only the combination vaccine, but now it will include two potential licensable vaccines. The deal with Sanofi will help Novavax reduce costs and expand its pipeline, bringing additional value to its shareholders and stakeholders.
Novavax CEO John Jacobs highlighted that the partnership with Sanofi will enhance patient access to Novavax’s Covid vaccine, broaden its market presence, and bring multiple new vaccines to market faster. By leveraging Sanofi’s commercialization and development expertise, Novavax aims to leverage its vaccine technology platform to improve global public health on a greater scale than it could have done on its own. The deal allows both companies to capitalize on each other’s strengths and resources, driving innovation and growth in the vaccine market.
Overall, the agreement between Novavax and Sanofi represents a significant step forward for both companies in advancing vaccine technology and expanding access to Covid and flu vaccines. By combining their strengths and resources, the companies aim to bring novel vaccine products to market quickly and efficiently, ultimately benefiting global public health. The partnership will help Novavax overcome its financial struggles and accelerate the development and commercialization of new vaccines. This collaboration marks a positive development for both companies and the broader healthcare industry.
