Novavax And Sanofi Sign a $1.2 Billion Vaccine Licensing Agreement

(CTN News) – A licensing agreement has been reached between Sanofi and Novavax Inc., which stipulates that the marketing of a vaccine that is capable of providing protection against both influenza and the Covid-19 virus is required.

Novavax was going to receive $700 million in milestones linked to research, regulatory, and launch, according to a statement that was published on Friday. This was in addition to the advance payments of $500 million that were going to be made.

In addition, Sanofi is obtaining a minority stock interest in Novavax,

Which accounts for around five percent of the entire shares of the company. As a result of the pre-market activity that took place in New York, the value of Novavax shares increased by as much as 49 percent.

According to the closing price on Thursday, the stock of the firm had experienced a decline of around fifty percent over the course of the previous year.

The collaboration brings together two key operators in the vaccine sector that missed the potential to rapidly develop and commercialize Covid-19 vaccines during the pandemic. These operators were unable to take advantage of the opportunity. These two actors did not make the most of the chance that was presented to them.

When compared to more agile messenger-RNA developers, such as the cooperation between Pfizer and BioNTech and Moderna Inc., the pharmaceutical corporations Sanofi and Novavax saw a loss of sales that amounted to tens of billions of dollars. During a period in which they were going through a string of unsuccessful attempts.

From the beginning of the next year, Sanofi will be granted the exclusive rights to promote sales of Novavax’s Covid-19 injectable on a global scale. India, Japan, and South Korea are the only countries that have been exempt from this requirement.

These are the countries in which Novavax has previously negotiated advance purchase arrangements. One more thing to add salt to injury: the French pharmaceutical business is the only one that has been given permission to use Novavax’s protein-based Covid injection in conjunction with its flu immunization.

According to the information provided by the company, this combination will offer patients “enhanced convenience and protection against two serious respiratory viruses.”

In addition, Sanofi will be awarded a license to use Novavax’s Matrix-M adjuvant in future vaccine formulations. This license will not be exclusive to Sanofi. Novavax will continue to have the right to independently fund the process of developing its own combination Covid-19 vaccine. This right will be maintained in the future.

The shares of Sanofi enjoyed a small increase during the early trading session that took place in Paris.

As of the conclusion of business on Thursday, the stock had suffered a decline of almost five percent over the course of the previous twelve months.

Novavax, which is currently in the process of reorganizing its operations as a result of a challenging 2023 in which it was compelled to issue a going concern warning regarding its capacity to continue, is in a position to gain from the agreement.

This is because the arrangement permits Novavax to continue conducting business.

Novavax’s net loss for the first quarter was $148 million, which is a considerable decline from the $294 million it experienced during the same period of time in the previous year. In comparison, Novavax’s net loss for the same period of time in the previous year was $294 million.

SEE ALSO:

Thailand’s Prime Minister Vows to Relisted Cannabis as a Narcotic