Novavax Secures Multi-Billion Dollar Licensing Deal

Novavax, Inc. has reported its first quarter 2024 financial results and operational highlights, including a significant co-exclusive licensing agreement with Sanofi, a multinational pharmaceutical company. The agreement includes a potential multi-billion dollar revenue opportunity for Novavax, with a $500 million upfront payment and approximately $70 million equity investment in Novavax. Additionally, Novavax achieved total revenue of $94 million in the first quarter of 2024 and reduced current liabilities by an additional $831 million during the same period.

The company has removed the going concern notice and is set to host a conference call to discuss the latest developments.

The financial highlights of the agreement with Sanofi include the potential for significant upfront payments, equity investment, and milestones associated with product sales and development. Novavax is also eligible to receive royalties associated with the ongoing sales of its COVID-19 vaccine and Sanofi's flu-COVID-19 combination vaccine. Furthermore, Novavax is set to receive cost reimbursement for certain R&D and medical affairs costs from Sanofi.

In terms of its first quarter 2024 financial results, Novavax reported total revenue of $94 million, compared to $81 million in the same period in 2023. The cost of sales for the first quarter of 2024 was $59 million, while research and development (R&D) expenses decreased to $93 million from $247 million in the same period in 2023. Selling, general, and administrative (SG&A) expenses also decreased to $87 million from $113 million in the first quarter of 2023. The net loss for the first quarter of 2024 was $148 million, an improvement from a net loss of $294 million in the same period in 2023. Novavax's cash, cash equivalents, and restricted cash were reported at $496 million as of March 31, 2023, compared to $584 million as of December 31, 2023.

Looking ahead, Novavax is updating its full year 2024 financial guidance and expects to achieve combined revenue and Sanofi agreement payments in the range of $970 million to $1.17 billion. The company also aims to reduce combined R&D and SG&A expenses and initiate an additional cost reduction program to further reshape its global business operations.

Today the company's shares have moved 123.4% to a price of $9.98. For more information, read the company's full 8-K submission here.

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