Novavax (NVAX.US) shares are gaining nearly 120% before the start of this week's final trading session on the back of the signing of a $1.2 billion licensing agreement with Sanofi (SAN.FR).
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Create account Try a demo Download mobile app Download mobile appCurrent stock price change before the opening of the Wall Street session. Source: Yahoo Finance
Under the deal, Sanofi will acquire a 4.9% stake in the U.S. drugmaker. The taj deal and the stake acquisition values Novavax at about $1.4 billion, almost double its market capitalization of about $628 million yesterday. The agreement entitles Novavax to an upfront cash payment of $500 million and future payments contingent on certain milestones, as well as royalties ($700 million).
On the other hand, Sanofi will be licensed to co-market Novavax's vaccine in most countries and to use this COVID vaccine together with its own influenza vaccines as a combination vaccine. The license will begin early in the new year. Sanofi will also benefit from Novavax's flagship vaccine technology, the Matrix-M adjuvant, which can be used to develop entirely new vaccines. Novavax could gain another $200 million in this utility, the company added in a public announcement.
More details of this agreement can be found at the link below.
Source: xStation
