NVAX Stock Climbs As Partnership Model Keeps COVID Vaccine Cash Flow Open

• Nuvaxovid is a protein-based, non-mRNA vaccine stored at standard fridge temperatures.
• The approvals allow Novavax to continue collecting royalties on partner sales in those markets.
• Sanofi commercializes Nuvaxovid in most major markets, while Takeda sells the shot in Japan. 

Shares of Novavax (NVAX) closed up 2% on Friday after the company said its partners had approvals for an updated COVID shot in the U.S., EU, and Japan, preserving licensing revenue for the company. 

The move followed a two-day fade and a larger bounce earlier in the week.

What Novavax Said

Novavax said Sanofi and Takeda received clearances for an updated Nuvaxovid formulation for the 2026–2027 COVID season. Those nods let Novavax keep collecting royalties on partner sales in those markets. Nuvaxovid is a protein-based, non-mRNA vaccine stored at standard fridge temperatures. CEO John C. Jacobs said the partners are “well-positioned for this commercial season” and that the partnership model lets Novavax earn royalties “without carrying commercial infrastructure of our own.”

Sanofi commercializes Nuvaxovid in most major markets, including an expanded U.S. campaign and 2026 launches in markets such as Germany and Canada. Novavax is due royalties in the high teens to low twenties percent of Sanofi’s global net sales. 

Takeda sells the shot in Japan, where it was the second-most used COVID vaccine last season. Under the May 2025 Takeda partnership terms, Novavax gets seasonal approval milestones plus royalties. 

Novavax’s Business Model

In the second quarter, Novavax’s total revenue was $57 million, down 76% from $239 million a year earlier, when big Sanofi and Takeda milestones hit. Sanofi-related licensing and royalties still accounted for $36 million in the quarter. 

Novavax is separately entitled to $125 million from Sanofi if a late-stage trial of a COVID-flu combo vaccine starts, and $75 million when the manufacturing transfer finishes, expected mid-2027. 

How Did NVAX Retail Traders React?

On Stocktwits, retail sentiment around NVAX stock remained ‘bullish,’ while message volume was at ‘normal’ levels. 

Two Stocktwits users disputed the company's licensing strategy. One opined that the company has a “top-class” product but is a terrible salesperson, so the strategy makes sense. The other opined that the strategy leaves the company dependent on others. 

NVAX stock has gained 38% year-to-date. 

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