Novavax Announces Progress on Sanofi Agreement
Rhea-AI Summary
Novavax (Nasdaq: NVAX) has expanded its collaboration with Sanofi through an amended license agreement for Novavax's Matrix-M® adjuvant. The amendment allows Sanofi to use Matrix-M in their pandemic influenza vaccine candidate program through Phase 2 development, supported by BARDA funding.
Under the original agreement terms, Novavax can receive up to $200 million for the first four Sanofi products using Matrix-M, and up to $210 million in milestone payments for each subsequent product, plus ongoing royalties. The companies will negotiate additional terms if Sanofi proceeds to Phase 3 development.
Positive
- Expansion of existing partnership with major pharma company Sanofi
- Potential revenue of up to $200 million for first four products
- Additional milestone payments of up to $210 million per subsequent product
- Ongoing royalty payments for all Sanofi products using Matrix-M
- Government backing through BARDA funding support
Negative
- Phase 3 financial terms not yet determined
- Early-stage development status indicates long timeline to potential commercialization
News Market Reaction
On the day this news was published, NVAX gained 1.17%, reflecting a mild positive market reaction. Argus tracked a peak move of +7.1% during that session. Our momentum scanner triggered 46 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $18M to the company's valuation, bringing the market cap to $1.56B at that time. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
The CLA amendment enables Sanofi's use of Matrix-M in early-stage development of Sanofi's pandemic influenza vaccine candidate(s) through Phase 2. If Sanofi enters Phase 3 clinical development, the parties will negotiate license rates and financial terms.
"We're excited that Sanofi has recognized the potential of a pandemic influenza vaccine candidate that contains Novavax's validated Matrix-M® adjuvant," said John C. Jacobs, President and Chief Executive Officer, Novavax. "We're pleased to deepen our partnership with leading vaccine innovator, Sanofi, and to share our technology in support of
The amendment broadens the partnership between Novavax and Sanofi and adds to the terms of the original agreement that specifies that Novavax is eligible to receive up to
About Matrix-M® Adjuvant
Matrix-M is Novavax's proprietary adjuvant that can be added to a vaccine to stimulate a stronger immune response and is currently used in globally approved vaccines. It is clinically proven to induce potent, durable and broad immune responses with an acceptable safety and tolerability profile.1 The Company's recombinant, protein-based nanoparticles are combined with its Matrix-M adjuvant, constituting the basis of Novavax's expanding pipeline.
About Novavax
Novavax, Inc. (Nasdaq: NVAX) tackles some of the world's most pressing health challenges with its scientific expertise in vaccines and its proven technology platform, including protein-based nanoparticles and its Matrix-M adjuvant. The Company's growth strategy seeks to optimize its existing partnerships and expand access to its proven technology platform via research and development innovation, organic portfolio expansion in infectious disease and beyond, and forging new partnerships and collaborations with other companies. Please visit novavax.com and LinkedIn for more information.
Forward-Looking Statements
Statements herein relating to the future of Novavax, its operating plans and prospects, the efficacy, safety and intended utilization of Novavax's COVID-19 vaccine, the possible receipt of potential milestone payments or tiered royalties from vaccine sales, the immunogenic response of its vaccine technology against variant strains and the scope, are forward-looking statements. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, challenges or delays related to the requested postmarketing commitment; antigenic drift or shift in the SARS-CoV-2 spike protein, challenges satisfying, alone or together with partners, various safety, efficacy and product characterization requirements, including those related to process qualification and assay validation, necessary to satisfy applicable regulatory authorities; difficulty obtaining scarce raw materials and supplies; resource constraints, including human capital and manufacturing capacity, on the ability of Novavax to pursue planned regulatory pathways; challenges or delays in obtaining regulatory authorization for a JN.1 protein-based COVID-19 vaccine or for future COVID-19 variant strain changes; challenges or delays in clinical trials; manufacturing, distribution or export delays or challenges; Novavax's exclusive dependence on Serum Institute of India Pvt. Ltd. for co-formulation and filling and the impact of any delays or disruptions in their operations on the delivery of customer orders; and those other risk factors identified in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Novavax's Annual Report on Form 10-K for the year ended December 31, 2024, as updated by the information identified in the "Risk Factors" section in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, each as filed with the Securities and Exchange Commission (SEC). We caution investors not to place considerable reliance on forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and www.novavax.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Contacts:
Investors
Luis Sanay, CFA
240-268-2022
ir@novavax.com
Media
Giovanna Chandler
(844) 264-8571
media@novavax.com
References
1. Stertman L. et al.; The Matrix-M™ adjuvant: A critical component of vaccines for the 21st century. Hum Vaccin Immunother. 2023 Dec 31;19(1):2189885. doi: 10.1080/21645515.2023.2189885.
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SOURCE Novavax, Inc.
FAQ
What is the new agreement between Novavax and Sanofi for Matrix-M adjuvant?
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