Novavax shares surged over 125% on Friday morning following the announcement of a Covid-19 vaccine licensing agreement with Sanofi. The agreement involves the co-development of Covid/flu vaccine combinations by both companies, with Sanofi being licensed to co-commercialize the vaccine on a global scale.
As part of the agreement, Sanofi will take a minority equity stake in Novavax and provide an upfront payment of $500 million. Additional milestone, regulatory, and other payments could potentially amount to a total of $1.2 billion. This partnership marks a significant milestone for Novavax, a Maryland-based biotech company.
In addition to the licensing agreement, Novavax also reported its first-quarter results, including a halved net loss of around $148 million, which was in line with expectations. Despite revenue increasing by 16% to $93.86 million, it fell short of the anticipated $101.6 million. Consequently, Novavax revised its full-year revenue outlook to a range between $400 million and $600 million, down from the previous range of $800 million to $1 billion.
Prior to the announcement of the licensing agreement, Novavax shares had experienced a significant decline, dropping nearly 99% from their February 2021 high. However, the stock saw a surge of around 118% in premarket trading on Friday, trading just below $10. Meanwhile, Sanofi’s stock rose by 0.4% to $48.86, with minimal year-to-date gains and a slight decrease over the past 12 months.
In conclusion, the partnership between Novavax and Sanofi represents a promising opportunity for the development of Covid/flu vaccine combinations and highlights the potential for future growth and innovation in the biotech industry.
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