In May 2024, Novavax and Sanofi announced that they have entered an agreement to co-commercialise Novavax’s COVID-19 vaccine and develop novel flu-COVID-19 combination vaccines. The agreement is intended to provide “broader access” to the protein-based non-mRNA adjuvanted COVID-19 vaccine from 2025 and accelerate potential for the development of a novel flu-COVID-19 combination product based on authorised vaccines. Under the terms:
- Novavax will receive an upfront payment of $500 million and up to $700 million in development, regulatory, and launch milestones.
- From 2025 Sanofi will book sales of Novavax’s adjuvanted COVID-19 vaccine and support certain R&D, regulatory, and commercial expenses.
- Novavax will receive tiered, double-digit percentage royalty payments on sales by Sanofi of COVID-19 vaccines and COVID-19-Influenza Combination vaccines.
- Sanofi will be solely responsible for development and commercialisation of any novel flu-COVID-19 combination vaccine containing a Sanofi flu vaccine.
- Beyond the collaboration each party may develop and commercialise their own COVID-19-Influenza combination vaccines and adjuvanted products and their own cost.
- Novavax is entitled to additional launch sales milestone opportunities of up to $200 million, plus mid-single digit royalties for each additional Sanofi vaccine product developed under a non-exclusive license with Novavax’s Matrix-M adjuvant technology
- Sanofi will take a minority (<5%) equity investment in Novavax.
Convenience and protection
Sanofi’s Global Head of Vaccines R&D, Dr Jean-François Toussaint, commented that flu and COVID-19 hospital admission rates are “now closely mirroring each other”, which presents an “opportunity” to offer patients combination vaccines. This would provide “enhanced convenience and protection against two serious respiratory viruses”.
“We’re excited by the prospect of combining Novavax’s adjuvanted COVID-19 vaccine that has shown high efficacy and favourable tolerability, with our rich portfolio of differentiated flu vaccines that have demonstrated superior protection against flu and its serious complications.”
Dr Toussaint anticipates a demand from regulators, recommending bodies, and patients, for “improved tolerability and thermostability, without compromise on efficacy”. John C. Jacobs, President and CEO of Novavax, believes that the collaboration is important for “global public health” as it combines Novavax’s proprietary recombinant protein and nanoparticle technologies, Matrix adjuvant, and R&D expertise with Sanofi’s “world-class” leadership in launching and commercialising innovative vaccines.
“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. Novavax is now in a stronger position to refocus our efforts on leveraging our technology platform and novel adjuvant in R&D and pipeline expansion to help advance our mission of developing life-saving vaccines to fight infectious diseases.
A boost for Novavax
Following the announcement, Financial Times reported that shares in Novavax “almost doubled”: shares closed 98.7% higher. The company also removed a “going concern” notice from a year ago. FT suggests that this comes after a “tumultuous period” for Novavax, after the potential of its COVID vaccine was undermined by launch “mis-steps”. Forbes echoes this, suggesting that “yearslong financial woes” might be turning in this “significant uptick”.
For the latest in vaccine research and development, why not subscribe to our newsletters here?
