Novavax COVID-19 Vaccine Approved In Japan, Triggers Milestone Payment From Partner Takeda

Novavax, Inc. (NVAX) announced on Thursday that its COVID-19 vaccine, Nuvaxovid, has been approved in Japan, triggering a milestone payment from Japanese pharmaceutical company Takeda.

The vaccine was approved for initial immunization (first and second vaccinations) in individuals aged six years or older, and as a booster immunization (following the third vaccination) in individuals aged 12 years or older in the country.

On Stocktwits, retail sentiment around NVAX stock stayed within ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

Under Novavax’s deal with Takeda, the company is also eligible to receive royalties on net sales of Nuvaxovid from Takeda in this vaccination season. The company did not disclose specific payment amounts, saying that it is bound by contractual confidentiality agreements.

Novavax and Takeda updated the terms of their 2020 collaboration and licensing agreement for Nuvaxovid in May. The amended deal includes an upfront payment, a payment related to the 2024-2025 season, annual milestones associated with regulatory approvals, and royalties on net sales earned every season moving forward, the company stated. In the second quarter, the company reported $27 in licensing, royalties, and other revenue from Takeda.

Novavax got the U.S. Food and Drug Administration’s approval for Nuvaxovid in May for the prevention of COVID-19 in adults 65 years and older and individuals aged 12 through 64 years who have at least one underlying condition that puts them at high risk for severe outcomes from the disease. The FDA then requested the company to conduct a postmarketing commitment (PMC) study.

However, Novavax stated last month that the study will not impact its operating profit for 2025, as its partner, Sanofi, will cover the majority of the expenses.

NVAX stock is down 9% this year and approximately 38% over the past 12 months. 

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