Novavax, a U.S.-based vaccine manufacturer, announced on Wednesday the sale of its Czech Republic production facility to Novo Nordisk, the maker of Wegovy, for $200 million. The proceeds will support Novavax’s efforts to prioritize its vaccine pipeline and strengthen its core business. The sale aligns with the company’s ongoing strategy to streamline operations and focus on vaccine development. This move follows a recent $1.2 billion licensing agreement with French pharmaceutical giant Sanofi, which also acquired nearly a 5% stake in Novavax.
The agreement with Sanofi includes a $500 million upfront payment within 10 days and an equity investment of approximately $70 million in Novavax, representing a 4.9% minority interest. Novavax will receive several milestone payments, including those related to developing and commercializing Sanofi’s new flu-COVID-19 combination vaccine, Nuvaxovid, and additional products developed with Novavax’s Matrix adjuvant. Novavax will also be eligible to receive a tiered double-digit percentage of product royalties from Sanofi.
Since its establishment in 2010, Novavax has been unwavering in its commitment to developing innovative vaccines to address pressing global health needs. The company’s unique recombinant protein approach and patented Matrix-M adjuvant technology have been instrumental in this mission. Novavax’s proprietary recombinant platform offers the speed, flexibility, and economics of large-scale production to produce highly immunogenic nanoparticles that deliver potent, long-lasting immune responses.
Novavax has strategically built a diverse vaccine portfolio targeting a wide range of serious infectious diseases. This comprehensive pipeline includes next-generation flu, meningococcal, and other vaccines, as well as therapeutic antibodies for the treatment of cancer and rare diseases. The company’s robust patent estate, with over 500 issued and filed patents in the United States, Europe, Japan, China, and other jurisdictions, further underscores its commitment to addressing global health challenges.
The company is headquartered in Gaithersburg, Maryland. For more information about the company, please visit www.novavax.com.
This press release contains forward-looking statements. These statements are based on the current beliefs and expectations of management. They are subject to several uncertainties, risks, and assumptions that could cause results to differ materially from those expressed or implied in these statements, including the ability of Novavax’s vaccine antigen dose amounts to meet the APA requirements and its plans for future business development. To discuss these and other risks and uncertainties, investors should review the “Risk Factors” section of Novavax’s Annual Report on Form 10-K for the year ended December 31, 2018, and any subsequent Quarterly Reports on Form 10-Q.
Novavax is committed to keeping the public informed about its progress and future plans. The company assumes no obligation to update these forward-looking statements except as law requires, but it remains dedicated to transparency and open communication.
Novo Nordisk, the parent company of Wegovy and Ozempic, is spending billions to expand its capacity to produce these blockbuster drugs in the Czech Republic and neighboring countries. A Novo Nordisk spokesperson said Wednesday that the Czech facility would be used to produce these products and a range of other vaccines and pharmaceuticals. The company declined to comment further. Novo Nordisk shares were up 0.6% in late morning trading to 378.64 euros.
