Novavax Amends Deal With Sanofi, Broadens Partnership

Novavax, Inc. (NVAX) on Tuesday said that it has amended its collaboration and license agreement with Sanofi (SNY) to include the use of its Matrix-M adjuvant in Sanofi's pandemic influenza vaccine candidate program.

The amendment of the agreement allows for the use of Matrix-M in early-stage development of Sanofi's pandemic influenza vaccine candidate. The two players will negotiate license rates and financial terms if the program enters late-stage study, Novavax said.

Matrix-M is Novavax's proprietary adjuvant that can be added to a vaccine to stimulate a stronger immune response and is currently used in globally approved vaccines. Sanofi is currently exploring additional opportunities with Matrix-M, Novavax said.

NVAX stock traded 1.4% lower on Tuesday morning and was among the top trending tickers on Stocktwits. On Stocktwits, retail sentiment around NVAX stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

A Stocktwits user opined that the agreement is a long-term payout play.

The new amendment adds to the terms of the original agreement between the two companies, dated May 2024. Under the agreement, Novavax is entitled to receive up to $200 million for the first four products created by Sanofi utilizing its Matrix-M adjuvant, and up to $210 million in milestone payments for each product including Matrix-M thereafter. Novavax is also eligible to receive royalties for all Sanofi products utilizing Matrix-M.

Sanofi is Novavax’s biggest partner. In the second quarter, the $199 million received from Sanofi accounted for over 83% of Novavax’s total revenue of $239 million.

NVAX stock is up by 5% this year but down by 33% over the past 12 months.

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