France’s Sanofi (NASDAQ: SNY) has announced a strategic partnership with protein-based vaccines specialist Novavax (NASDAQ: NVAX), aiming to enhance its immunization portfolio. Under the agreement, Sanofi will gain access to Novavax’s Matrix-M adjuvant and secure exclusive rights to combine its influenza vaccines with Novavax’s SARS-CoV-2 vaccine. Sanofi will also co-commercialize the combined vaccine in most markets.
According to the press release, Novavax stands to receive up to USD 1.2 billion in upfront and milestone payments for its vaccine, plus potential sales royalties. Additionally, the company will receive up to USD 200 million and royalties related to its adjuvant technology. Sanofi will cover research and development (R&D), regulatory, and commercial expenses, develop and market any resulting combination vaccine, and take a minority equity stake in Novavax.
This deal is particularly significant for Novavax, which had been grappling with “going concern” uncertainties prior to the announcement.- Flcube.com
