Novavax advances growth strategy through partnership with Sanofi

Novavax (NVAX) announced progress in Q4 advancing its corporate growth strategy through its partnership with Sanofi (SNY). The company has achieved a milestone associated with its Phase 2/3 clinical trial for its COVID-19 vaccine in children, triggering the first $50M milestone payment from Sanofi. The $50M milestone is the first following the initial upfront payment at signing of the agreement with Sanofi in May 2024. Following this payment, there are additional potential milestones of up to $300M related to Novavax’s partnered COVID-19 vaccine that will be recognized in the periods when earned. In addition to milestones for the stand-alone COVID-19 vaccine, the agreement also includes combination products developed by Sanofi including Novavax’s COVID-19 vaccine, which present a potential opportunity of up to an additional $350M for Novavax in future milestones. In addition, both stand-alone COVID-19 sales and potential sales of any Sanofi combination products would net Novavax ongoing tiered royalties. Further, Novavax is eligible to receive up to $200M for the first four products created by Sanofi utilizing its Matrix-M adjuvant, and up to $210M in milestone payments for each product including Matrix-M thereafter, plus ongoing royalties for all Sanofi products utilizing Matrix-M.