Biotech
Sanofi Buys 4.9% of Novavax for 65 Million Euros
Sanofi acquires 4.9% of Novavax shares for $70 million, doubling the latter’s valuation to around $1.4 billion. This investment is part of a co-exclusive licensing agreement for joint marketing of Covid-19 vaccines with flu vaccines. Novavax’s first-quarter revenue increased by 16% to $94 million, while losses decreased by 49.6%.
The French laboratory Sanofi has acquired 4.9% of the shares of the American company Novavax in exchange for $70 million (65 million euros), a price that doubles the company’s valuation to around $1.4 billion ( 1.3 billion euros).
Sanofi’s investment occurs in the context of the co-exclusive licensing agreement reached between the two laboratories for the joint marketing of Covid-19 vaccines in combination with flu vaccines for which the French company will pay up to $1.2 billion ( 1.11 billion euros).
Specifically, Sanofi will make, in favor of the American laboratory, an initial payment of $500 million (465 million euros), in addition to up to another $700 million (650 million euros) depending on development, regulation and milestones.
The terms of the agreement include a co-exclusive license to co-market Novavax’s Covid-19 vaccine worldwide, except in countries with existing advance purchase agreements in place, as well as in India, Japan and South Korea; and an exclusive license for Novavax’s Covid-19 vaccine for use in combination with Sanofi’s flu vaccines.
Including the impact of the agreement with Sanofi, Novavax expects that its annual sales will range between $970 million and 1.17 billion
“We have the opportunity to develop combination vaccines against influenza and Covid-19 without mRNA that offer patients greater comfort and protection against two serious respiratory viruses,” said Jean-François Toussaint, global head of research and development (R&D). D) Sanofi vaccines.
“This collaboration is important for Novavax and for global public health,” said Juan Jacobs, CEO of Novavax. Likewise, the agreement with the French company has allowed Novavax to withdraw its warning about the viability of the business operation ( going concern).
On the other hand, Novavax has reported that in the first quarter of the year its revenue increased by 16%, to $94 million (87 million euros), while the company reduced its losses by 49.6%, to $148 million (137 million euros).
Looking at the year as a whole, the laboratory has cut its annual revenue forecast, excluding the impact of the agreement with Sanofi, to a range of between $400 and $600 million (372 million euros and 558 million), compared to the range previous of between $800 million and $1 billion (743 million euros and 930 million).
However, when including the impact of the agreement with Sanofi, Novavax expects that its annual sales will range between $970 million and 1.17 billion (901 and 1.087 billion euros).
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(Featured image by PhotoLizM via Pixabay)
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First published in PlantaDoce. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.
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