Novavax, Inc. (Nasdaq:NVAX), a biotechnology company currently valued at $1.4 billion with a robust gross profit margin of 57%, has amended its collaboration and license agreement with Sanofi to include the use of Novavax’s Matrix-M adjuvant in Sanofi’s pandemic influenza vaccine candidate program, the company announced Tuesday. According to InvestingPro data, Novavax maintains a healthy financial position with more cash than debt on its balance sheet.
The amendment allows Sanofi to use Matrix-M in early-stage development through Phase 2 clinical trials for pandemic influenza vaccine candidates. If Sanofi advances to Phase 3 development, the companies will negotiate additional license rates and financial terms. The deal comes as Novavax demonstrates strong financial performance, with InvestingPro analysis showing a notable return on assets of 27% in the last twelve months.
Sanofi recently received funding from the Biomedical Advanced Research and Development Authority for early-stage work on this vaccine candidate, which includes the Matrix-M adjuvant.
"We’re excited that Sanofi has recognized the potential of a pandemic influenza vaccine candidate that contains Novavax’s validated Matrix-M adjuvant," said John C. Jacobs, President and Chief Executive Officer of Novavax.
The expanded agreement builds upon the original collaboration terms, under which Novavax is eligible to receive up to $200 million for the first four Sanofi products using Matrix-M, and up to $210 million in milestone payments for each subsequent product, plus ongoing royalties.
Matrix-M is Novavax’s proprietary adjuvant designed to enhance immune responses when added to vaccines. According to the company, it has been clinically proven to induce potent immune responses with an acceptable safety profile.
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