Novavax Stock Surges on $1.4 Billion Sanofi Deal. Pharmaceutical companies experienced a notable surge in market capitalization within a single day, reflecting a broader trend of volatility and recovery in the sector after significant losses since reaching a record high in 2021.
Novavax, a prominent vaccine maker listed on the Nasdaq under the symbol NVAX, witnessed a remarkable doubling in its stock value on Friday following an announcement of a major partnership. The company disclosed that it had secured a substantial $1.4 billion investment from French healthcare giant Sanofi to support the commercialization of its coronavirus vaccine. This collaboration will not only enable Sanofi to strengthen its flu vaccine portfolio but also facilitate the development of a combined influenza and COVID-19 vaccine using Novavax’s licensed technology. As part of the deal, Sanofi will acquire a minority stake of less than 5% in Novavax.
Despite this recent surge, Novavax’s stock remains significantly below its record high achieved in February 2021, when its valuation reached a staggering $20 billion with shares nearing $320. The decline was precipitated by challenges in vaccine procurement and demand following the initial success of its COVID-19 vaccine rollout. At one point, Novavax even cautioned about the possibility of going out of business due to waning demand for COVID-19 vaccines. Novavax Stock Surges on $1.4 Billion Sanofi Deal.
The collaboration with Sanofi injects renewed optimism and financial support into Novavax’s operations. Sanofi’s significant upfront investment of $500 million, along with additional payments contingent on regulatory approvals and production milestones, underscores the strategic importance of this partnership in revitalizing Novavax’s vaccine development efforts. Furthermore, an additional $200 million allocation is earmarked for Novavax’s Matrix-M technology, which enhances immune response in vaccines.
