Novavax signs $1.2bn Covid-19 licensing deal with Sanofi, shares rocket

Shares of US biotech firm Novavax rocketed on Friday after it signed a $1.2bn licensing agreement with French pharmaceutical group Sanofi to commercialise its Covid-19 vaccine from next year.

Sanofi will have a co-exclusive license to co-commercialise Novavax’s current standalone adjuvanted Covid-19 vaccine worldwide, except in countries with existing advance purchase agreements and in India, Japan, and South Korea, where Novavax has existing partnership agreements.

Sanofi will also have a sole license to Novavax’s adjuvanted Covid-19 vaccine for use in combination with its own flu vaccines, and a non-exclusive license to use the group’s shot and flagship vaccine technology, Matrix-M adjuvant, in vaccine products.

In addition, Sanofi will take a minority stake - less than 5% - in Novavax.

Novavax will receive an upfront payment of $500m and up to $700m in development, regulatory and launch milestones.

Jean-Francois Toussaint, global head of Vaccines R&D at Sanofi, said: "With flu and Covid-19 hospital admission rates now closely mirroring each other, we have an opportunity to develop non-mRNA flu-Covid-19 combination vaccines, offering patients both enhanced convenience and protection against two serious respiratory viruses.

"We're excited by the prospect of combining Novavax's adjuvanted Covid-19 vaccine that has shown high efficacy and favourable tolerability, with our rich portfolio of differentiated flu vaccines that have demonstrated superior protection against flu and its serious complications. Improved tolerability and thermostability, without compromise on efficacy, are what regulators, recommending bodies and patients will demand."

John C. Jacobs, president and chief executive of Novavax, said: "This collaboration is important for Novavax and for global public health. Our new partnership combines Novavax's proprietary recombinant protein and nanoparticle technologies, Matrix™ adjuvant and R&D expertise with Sanofi's world-class leadership in launching and commercializing innovative vaccines.

"Together, we can broaden access to both our Covid-19 vaccine and our adjuvant to ensure more individuals can benefit from the protection vaccines can provide."

He said Novavax is now in a stronger position to refocus its efforts on leveraging its technology platform and novel adjuvant in R&D and pipeline expansion "to help advance our mission of developing life-saving vaccines to fight infectious diseases".

At 1220 BST, Novavax shares were up 129% in pre-market trade at $10.26.