Novavax Receives $25 Million Milestone Payment from Sanofi

By Greg Peters • Tuesday, October 07 15:30 • Permanent Link

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

Novavax is also set to receive additional future milestones and royalties under the collaboration and license agreement related to Nuvaxovid and other products. For instance, Novavax is eligible for an additional $25 million milestone for the marketing authorization transfer in the U.S. and a $75 million milestone payment upon the completion of the technology transfer of the company’s manufacturing process for the COVID-19 vaccine to Sanofi. Furthermore, Novavax stands to receive up to an additional $350 million in future milestones for combination products developed by Sanofi, which include Novavax’s COVID-19 vaccine (and Matrix-M). Novavax is also eligible for ongoing tiered royalties from sales of both stand-alone COVID-19 and any Sanofi combination products.

Nuvaxovid is a vaccine 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.

It’s important to note that Novavax has a growth strategy seeking to optimize its existing partnerships and expand access to its technology platform via research and development innovation and forging new partnerships and collaborations with other companies.

This development signifies significant progress for Novavax as it continues to deliver on its corporate growth strategy and partnership agreements, as stated by John C. Jacobs, President and Chief Executive Officer of Novavax.

The completion of this transfer and the triggering of the milestone payment demonstrate the continued advancement of Novavax's corporate growth strategy and the company's commitment to ensuring global access to its protein-based, non-mRNA COVID-19 vaccine. Following these announcements, the company's shares moved -4.02%, and are now trading at a price of $9.08. For more information, read the company's full 8-K submission here.

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