Novavax Completes Transfer of COVID-19 Vaccine Authorization to Sanofi

By Bobby Samwell • Tuesday, October 07 12:03 • Permanent Link

Novavax, Inc. (NASDAQ: NVAX) has reached a significant milestone in its partnership with Sanofi, completing the transfer of the marketing authorization for its COVID-19 vaccine, Nuvaxovid®, to Sanofi in the European Union (EU). This achievement has triggered a $25 million milestone payment to Novavax, further solidifying the collaboration and license agreement between the two companies.

John C. Jacobs, President and CEO of Novavax, highlighted the company's commitment to advancing its corporate growth strategy and delivering on its partnership agreement. This transfer represents a substantial step towards ensuring global access to Novavax's protein-based, non-mRNA COVID-19 vaccine.

Under the collaboration and license agreement, Novavax stands to receive additional future milestones and royalties related to Nuvaxovid, as well as combination products developed by Sanofi using Nuvaxovid and new vaccines created by Sanofi utilizing Novavax’s Matrix-M® adjuvant.

For Nuvaxovid, Novavax is positioned to receive an additional $25 million milestone for the marketing authorization transfer in the U.S. Additionally, upon the completion of the technology transfer of the company’s manufacturing process for the COVID-19 vaccine to Sanofi, Novavax is eligible for a $75 million milestone payment.

In the context of combination products developed by Sanofi that include Nuvaxovid and Matrix-M, Novavax could receive up to an additional $350 million in future milestones. The company is also entitled to ongoing tiered royalties from sales of both stand-alone COVID-19 vaccines and any Sanofi combination products.

Moreover, Novavax is positioned to receive up to $200 million for the first four products created by Sanofi utilizing its Matrix-M adjuvant, and up to $210 million in milestone payments for each product including Matrix-M thereafter, in addition to ongoing royalties for all Sanofi products utilizing Matrix-M.

Nuvaxovid is indicated for active immunization to prevent COVID-19 caused by SARS-CoV-2 in individuals 65 years of age and older, or 12 years through 64 years of age with at least one underlying condition that puts them at high risk for severe outcomes from COVID-19.

Novavax's growth strategy aims to optimize its existing partnerships and expand access to its proven technology platform through research and development innovation, organic portfolio expansion in infectious disease and beyond, and forging new partnerships and collaborations with other companies.

The completion of this marketing authorization transfer marks a significant advancement in Novavax's collaboration with Sanofi and underscores the company's dedication to ensuring global access to its COVID-19 vaccine. Following these announcements, the company's shares moved -4.02%, and are now trading at a price of $9.08. For the full picture, make sure to review NOVAVAX INC's 8-K report.

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