Topline
Shares for Novavax swelled by more than 130% Friday morning, after the biotech firm announced a $1.4 billion deal with Sanofi to commercialize its Covid vaccine and develop a new combination shot for protecting against the flu and Covid.
Key Facts
Novavax shares surged 132% to $10.41 as of 10:00 a.m. Friday morning, following an earlier surge in premarket trading.
The biotech company announced a licensing agreement with Sanofi to sell Novavax’s Covid vaccine worldwide, with Sanofi paying Novavax $500 million upfront and future payments up to $700 million based on other milestones, in addition to royalties.
Sanofi—which will take a less than 5% stake in Novavax—will receive a sole license to develop and commercialize a combination flu and Covid vaccine containing Novavax’s Covid shot and Sanofi’s flu shot, the companies said.
Novax is also entitled to launch and sales milestones of up to $200 million for any vaccine developed by Sanofi as part of the deal.
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What To Watch For
Novavax expects to launch a late-stage trial of its own combination vaccine targeting Covid and the flu and a stand-alone flu shot later this year.
This is a developing story and will be updated.
