Proactive Investors - Novavax, Inc. (NASDAQ:NVAX) shares surged Friday following the announcement of a significant licensing agreement with Sanofi (EPA:SASY) SA (ADR) (NYSE:SNY), valued at $1.2 billion.
The deal encompasses the commercialization of a combined COVID-19 and flu shot, marking a pivotal development in the field of vaccine production.
Shares of Novavax jumped 101% higher in New York trading Friday.
Under the terms of the agreement, Novavax is set to receive $500 million in upfront payments, with an additional $700 million contingent upon the achievement of various development, regulatory, and launch milestones.
Moreover, Sanofi will acquire an approximately 5% equity stake in Novavax, further solidifying the partnership between the two entities.
The partnership aims to capitalize on the convergence of COVID-19 and flu-related hospitalization rates, presenting an opportunity to develop combination vaccines that offer enhanced convenience and protection against respiratory viruses.
The licensing agreement delineates a comprehensive framework, encompassing upfront payments, milestone achievements, royalty payments, and equity investments, highlighting the depth of the collaboration.
“This collaboration is important for Novavax and for global public health,” Novavax CEO John Jacobs said in a statement.
“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.”