Sanofi is set to assist in the commercialization of
Novavax’s protein-based
COVID-19 vaccine, under a significant $1.2-billion agreement that will enable the French pharmaceutical company to merge the vaccine with its own
influenza shots. Announced on Friday, the deal serves as a crucial support for Novavax, which had previously raised alarms about its financial stability just over a year ago.
Novavax's COVID-19 vaccine has faced challenges in the market, arriving late and experiencing reduced demand as government procurement contracts diminished. This led the company to implement cost-saving measures last year and again in January. Novavax recently avoided a financial crisis by agreeing to pay up to $475 million to
Gavi, the Vaccine Alliance, resolving a dispute over unfulfilled COVID-19 vaccine doses and sidestepping arbitration that could have further destabilized its finances.
Under the new agreement,
Sanofi will make an upfront payment of $500 million to Novavax. In exchange, Sanofi will obtain a license to co-commercialize Novavax's current adjuvanted COVID-19 vaccine, with certain exceptions for markets where other partnerships and advance purchase agreements are already in place. Additionally, Novavax stands to receive up to $700 million in further development, regulatory, and launch milestone payments.
The deal also grants Sanofi the rights to combine Novavax's COVID-19 vaccine with its own influenza vaccines and use Novavax's Matrix-M adjuvant technology. Jean-Francois Toussaint, the global head of vaccines R&D at Sanofi, pointed out the growing similarity in hospital admission rates for flu and COVID-19. He emphasized the potential to develop combination vaccines that are not based on mRNA technology, highlighting that improved tolerability and stability, without sacrificing efficacy, will be critical to meeting the demands of regulators, advisory bodies, and patients.
Starting from next year, Sanofi will record sales of the COVID-19 vaccine and will pay Novavax tiered double-digit percentage royalties on these sales as well as on any flu-COVID-19 combination vaccines that are developed. Novavax will also be eligible for additional launch and sales milestone payments of up to $200 million and mid-single digit royalties for any other Sanofi vaccine products using the Matrix-M adjuvant.
Moreover, Sanofi will acquire a minority stake in Novavax, just under 5%, further solidifying the partnership between the two companies. This collaboration provides much-needed financial support to Novavax while leveraging Sanofi’s extensive market reach and experience in the influenza vaccine sector.
By combining their resources and expertise, Sanofi and Novavax aim to address the evolving landscape of respiratory illnesses with innovative vaccine solutions that meet the current and future needs of global populations.
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