Novavax Shares Sanofi Deal to Commercialize Covid Vaccine

(AmericanProsperity.com) – Novavax announced that it’s partnered with Sanofi, the French drugmaker, to co-commercialize their COVID-19 vaccine starting next year as well as develop combination shots.

The licensing agreement would allow Novavax to dissolve its “going concern” warning, which was implemented as the company was worried that it wouldn’t be able to continue operating. Health officials have said that Novavax’s vaccine is a protein-based alternative to messenger RNA vaccines from Moderna and Pfizer.

Sanofi will pay five hundred million dollars upfront and up to seven hundred million dollars over a series of payments. This deal gives Sanofi the right to vaccine technology from Novavax’s Covid shot to make new products.

On top of this, Novavax is entitled to royalty payments on Sanofi’s sales of its Covid vaccine and combination shots. Sanofi will take less than a five percent stake in Novavax’s company.

“It really does help our business. It keeps us well capitalized, it takes the going concern off, it gives us the chance to pivot our strategy more towards what we’re best at — to bring additional value to all of our stakeholders, including our shareholders,” Jacobs said.

They stated that the deal would help them use their vaccine technology to achieve their goals of improving public health “at a pace and a scale that we could have never done if we kept it all to ourselves.”

Commercialization of the product will start in 2025, but they will not oversee operations in places such as India, Japan, and South Korea where there are existing partnership deals.

Jacobs also said, “Through this agreement with a world leader like Sanofi, not only in commercialization but also in development, we believe that this multiplies immensely the opportunity to bring forth multiple new vaccines much more quickly.”

Copyright 2024, AmericanProsperity.com