Novavax and Sanofi to commercialize new coronavirus vaccine, develop combo shot

Novavax On Friday, it announced a multibillion-dollar deal with a French pharmaceutical company. sanofi The two companies are working on jointly commercializing the company’s new coronavirus vaccine starting next year and developing a combination vaccine targeting coronavirus and influenza.

Novavax stock soared more than 130% on Friday from its previous closing price of $4.47 per share.

Novavax CEO John Jacobs said in an interview with CNBC that the licensing agreement requires Novavax to lift its “continuing concerns” warning, which was first issued in February 2023, citing doubts about Novavax’s ability to continue operating. said it will be possible.

This marks a turning point for struggling vaccine makers and their protein-based coronavirus vaccines. Health officials see the vaccine as a valuable alternative for people who do not want to receive messenger RNA doses. pfizer and moderna.

As part of the deal, Sanofi will be allowed to develop new vaccine products using Novavax’s coronavirus shot and its lead vaccine technology, Matrix M adjuvant. Sanofi will pay Novavax $500 million upfront and up to $700 million in development, regulatory and launch milestone payments.

Novavax is also entitled to royalties on sales of Sanofi’s coronavirus vaccine and a combination vaccine for coronavirus and influenza. Novavax will also receive up to $200 million in additional launch and sales milestone payments, along with royalties, for each product developed by Sanofi using his Matrix-M adjuvant.

Under the deal, Sanofi will also acquire less than 5% of Novavax’s stock.

“It really helps our business. It allows us to maintain sufficient capital, eliminates ongoing concerns, and gives us the opportunity to pivot our strategy more towards what we do best.” Our shareholders,” Jacobs told CNBC.

The deal also allows the company to accomplish its mission of improving global public health with its vaccine technology platform “at a pace and scale that we would never have been able to achieve if we had kept everything in-house” due to a lack of resources, capital and resources. It will help you. The scope is broad, Jacobs said.

Novavax will lead the commercialization of the coronavirus vaccine for the remainder of this year, with most of its responsibilities transferring to Sanofi in 2025. Sanofi will not oversee commercialization in countries with existing partnership agreements with Novavax, including India, Japan and South Korea. , along with countries that have advanced coronavirus vaccine purchase agreements with the company.

Jacobs said Sanofi, as a major pharmaceutical company, could increase its market share and presence for Novavax’s COVID-19 vaccine, which would expand patient access to vaccination.

The deal also allows Sanofi to develop products that combine Novavax’s COVID-19 vaccine with influenza vaccines and other proprietary vaccines. Sanofi may also develop new vaccine products using Novavax’s Matrix-M adjuvant.

In particular, Sanofi will be solely responsible for the development and commercialization of combination vaccines, including its own influenza vaccine and Novavax’s coronavirus vaccine.

“We believe this agreement with a world leader like Sanofi will significantly increase our opportunities to develop multiple new vaccines more quickly, not only in commercialization but also in development,” Jacobs said. Ta.

Outside of the deal, Novavax plans to begin late-stage trials of its combination vaccine and standalone influenza shot for the new coronavirus and influenza later this year. Novavax previously said its trials included only a combination vaccine.

“Phase 3 clinical trials, scheduled to begin in the second half of this year, will, if successful, mean we will not only have one, but two licensed vaccines,” Jacob said, referring to the deal. . Free up costs and develop your own organic pipeline.