Sanofi, a global healthcare company and Novavax, a US biotechnology organisation, have entered into a co-exclusive licensing agreement to commercialise Novavax's standalone adjuvanted COVID-19 vaccine worldwide, as well as to develop COVID-19 and flu combination vaccines.
The agreement also entitiles Sanofi to use the Matrix-M adjuvant in vaccine products, as well as a minority (<5%) equity investment in Novavax.
Jean-Francois Toussaint Global Head of Vaccines R&D, commented: “With flu and COVID-19 hospital admission rates now closely mirroring each other, we have an opportunity to develop non-mRNA flu-COVID-19 combination vaccines offering patients both enhanced convenience and protection against two serious respiratory viruses. We’re excited by the prospect of combining Novavax’s adjuvanted COVID-19 vaccine that has shown high efficacy and favourable tolerability, with our rich portfolio of differentiated flu vaccines that have demonstrated superior protection against flu and its serious complications. Improved tolerability and thermostability, without compromise on efficacy, are what regulators, recommending bodies, and patients will demand.”
Under the terms of the licensing agreement:
- Novavax will receive an upfront payment of USD $500m and up to $700m in development, regulatory and launch milestones, up to $1.2bn in total
- Starting in 2025, Sanofi will book sales of Novavax’s adjuvanted COVID-19 vaccine and will support certain R&D, regulatory, and commercial expenses
- Novavax will receive tiered double-digit percentage royalty payments on sales by Sanofi of COVID-19 vaccines and flu-COVID-19 combination vaccines
- Sanofi will be solely responsible for development and commercialisation of any novel flu-COVID-19 combination vaccine containing a Sanofi flu vaccine.
Outside of the collaboration, each party may develop and commercialise their own flu-COVID-19 vaccines and adjuvanted products at their own cost.
Novavax is entitled to additional launch and sales milestones opportunities of up to $200m plus mid-single digit royalties for each additional Sanofi vaccine product developed under a non-exclusive license with Novavax’s Matrix-M adjuvant technology.
In addition, Sanofi will take a minority (<5%) equity investment in Novavax.
