$1.4 Billion Transaction Leverages Matrix-M Adjuvant Vaccine Technology

An international agreement that may reach $1.4 billion in value may disrupt the COVID-19 and influenza vaccine industry.

As part of Sanofi's commitment to developing a diverse portfolio of best-in-class vaccines, the company announced today it has entered into a co-exclusive licensing agreement with Novavax Inc., a global leader in protein-based, non-mRNA, adjuvanted COVID-19 vaccines.

The terms of the agreement disclosed on May 10, 2024, include but are not limited to, a co-exclusive license to co-commercialize Novavax's current stand-alone adjuvanted COVID-19 vaccine worldwide (except in countries with existing Advance Purchase Agreements and in India, Japan, and South Korea where Novavax has existing partnership agreements).

A sole license to Novavax's adjuvanted COVID-19 vaccine for use in combination with Sanofi's flu vaccines.

And a non-exclusive license to use the Matrix-M adjuvant in vaccine products.

Furthermore, Sanofi will take a minority (<5%) equity investment in Gaithersburg, Maryland-based Novavax.

Jean-Francois Toussaint, Global Head of Vaccines R&D at Sanofi, said in a press release, "With flu and COVID-19 hospital admission rates now closely mirroring each other, we have an opportunity to develop non-mRNA flu-COVID-19 combination vaccines offering patients both enhanced convenience and protection against two serious respiratory viruses."

"We're excited by the prospect of combining Novavax's adjuvanted COVID-19 vaccine, which has shown high efficacy and favorable tolerability, with our rich portfolio of differentiated flu vaccines, which have demonstrated superior protection against flu and its serious complications."

"Regulators, recommending bodies, and patients will demand improved tolerability and thermostability without compromising efficacy."

Novavax offers a differentiated vaccine platform that enhances the immune response by combining a recombinant protein approach, innovative nanoparticle technology, and its patented Matrix-M adjuvant.

In addition, Novavax's adjuvant is included in the University of Oxford and Serum Institute of India's R21/Matrix-M malaria vaccine.

Novavax announced today its financial results and operational highlights for the first quarter ended March 31, 2024.