Pharmaceutical companies Sanofi and Novavax Inc. have publicized a joint licensing contract to jointly sell the COVID-19 vaccine and develop new combo vaccines for COVID-19 and Influenza. Furthermore, Sanofi is to hold a below-5% minority stake in Novavax.
The partnership features several key clauses: a joint license to globally market Novavax's standalone COVID-19 vaccine, except for countries already signed on for Advance Purchase Agreements, and in India, Japan, and South Korea due to existing partnership commitments; a sole license for Sanofi to use Novavax's COVID-19 vaccine alongside its flu vaccines, while Novavax retains the rights to develop its own combo vaccine for COVID-19 and Influenza; a non-exclusive permission for using Novavax's COVID-19 vaccine with non-flu vaccines; plus a non-exclusive license for the inclusion of the Matrix-M adjuvant in vaccine products.
According to the terms of the licensing contract, Novavax will be given an advance payment of $500 million and could receive up to $700 million in development, regulatory, and launch milestones, amassing a total of up to $1.2 billion.
Starting in 2025, Sanofi will register sales of Novavax's COVID-19 vaccine and provide support for specific R&D, regulatory, and commercial expenses. Tiered double-digit percentage royalty payments will be received by Novavax on sales by Sanofi of COVID-19 vaccines and combo vaccines for COVID-19 and Influenza.
Sanofi will bear sole responsibility for developing and marketing any new combo vaccine containing a Sanofi flu vaccine for COVID-19 and Influenza. Outside of this partnership, both parties can independently develop and market their own combo vaccines and adjuvanted products at their own expense.
Novavax is also eligible for more launch and sales milestone opportunities of up to $200 million, plus mid-single digit royalties for every additional Sanofi vaccine product created under a non-exclusive license with Novavax's Matrix-M adjuvant technology.
In the meantime, Novavax has revised its total revenue predictions for the fiscal year 2024 to lie within the range of $400 million - $600 million, compared to its previous estimate of $800 million - $1.00 billion.
