Novavax shares skyrocket on $1.2 billion Sanofi vaccine deal

Novavax (NVAX) shares are skyrocketing after announcing a $1.2 billion deal with Sanofi (SNY) to commercialize a combined COVID-19 and flu shot. Yahoo Finance's Anjalee Khemlani joins The Morning Brief to report more on the story.

The Novavax-Sanofi deal also includes co-commercialization of the COVID-19 vaccine currently on the market. Novavax will be entitled to an additional $200 million for any new vaccines involving its adjuvant. Sanofi will receive a minority stake of less than 5% in Novavax and will invest $70 million.

Shares of Novavax jumped more than 120% following the news.

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This post was written by Melanie Riehl

Video Transcript

Let's take a look at some of the top trending tickers on Yahoo Finance this morning.

Novo backs topping the list here.

Sure, skyrocketing after announcing a $1.2 billion deal with Sanofi to commercialize a combined COVID-19 and flu shot.

Yahoo Finance's Angelique Kani has the details for us.

Did I get the prono route according to the French?

I know I get it wrong every time I got it wrong earlier, but it's OK. Everyone says it differently.

So Sanofi big Pharma coming in to Novavax out.

Uh Novavax inking that deal $1.2 billion and that includes uh co commercialization of the COVID vaccine.

That's the one that's currently on the market as well as future, the combo flu and COVID vaccine that they've been working on for quite some time.

If you recall, Novavax was initially working on just a flu vaccine before the pandemic.

So this is kind of going back to the roots.

Meanwhile, there's an additional part of the uh program which is gonna be an additional 200 million for uh anything, any other vaccines coming out in the future that have to do with Novavax platform.

That's the Adjuvant Matrix and platform that they're known for, they've been licensing out as well.

So that's where this whole deal comes in on, you know, looking at the Novavax pipeline.

Meanwhile, Soofi also gets a minority stake less than 5% stake in the company and investing $70 million specifically.

So that boosts nova valuation and that's why you're seeing the, the share of skyrocket today up over 100 and 20% already.

Yeah, I talk to us a little bit more about what exactly this means ultimately for Novavax business here in the long run.

And then does this totally erase all those concerns that we had going back just over a year ago about their ability here to continue 100%.

This literally saved Novavax.

Um They were struggling, they were looking like uh you know, they, they weren't sure whether or not they could stay operational for the long term future in part because they entered the vaccine race late and they started off in the initial batch during that operation Warp speed program, but they met with some manufacturing delays and then ended up falling behind and only getting approved in mid 2022 after the initial round of vaccines already started.

So they were really eyeing the booster market.

They've seen a little bit of revenue come in there, but meanwhile, have had to slow down, make some cuts and really real uh on their books, what they're looking at cut down on R and D as well.

So that's all been impacting the company.

Meanwhile, Santa Fe a really strong flu program and profile the flu vaccines contribute a lot to their overall vaccine portfolio.

Uh 2.8 billion of the about 8 billion that they receive annually comes from flu.

And so the the match that's being made here is at Santa Fe's platform is also a recombinant protein vaccine just like Novavax.

So that's why this deal makes so much sense and just a little point there as well.

Santa Fe also did the same thing with their COVID vaccine in partnership with GSK uh entering the market late and also eyeing that booster market.

So they're really on par in terms of sort of what their strategies have been for COVID.

So it may, it may be a match made in heaven.

That experience could potentially here pay off.

All right, ANJ.

Thanks so much.