Novavax enters license agreement with Pfizer for use of Matrix-M

Novavax (NVAX) has entered into a license agreement with Pfizer (PFE) for use of Novavax’s Matrix-M adjuvant. Under the terms of the agreement, Pfizer will obtain a non-exclusive license for Matrix-M for use with Pfizer’s products in up to two disease areas. Under the terms of the license agreement: Novavax will receive an upfront payment of $30M and the potential to receive up to $500M in development and sales milestones. In addition to milestone payments, Novavax is eligible to receive tiered high mid-single digit percentage royalty payments on sales of any product by Pfizer that includes Matrix-M. Pfizer will be solely responsible for the development and commercialization of its products utilizing Matrix-M. Novavax will be responsible for the supply of Matrix-M.