Novavax’s Nuvaxovid EU approval triggers $25M milestone payment from Sanofi

Novavax (NVAX) has completed the transfer of the marketing authorization for its COVID-19 vaccine, Nuvaxovid to Sanofi (SNY), in the European Union enabling Sanofi to take full responsibility for commercial and regulatory activities in the EU. The transfer triggered a milestone payment of $25M to Novavax and further progresses the collaboration and license agreement between both companies. Novavax is eligible to receive additional future milestones and royalties under the CLA related to Nuvaxovid, combination products developed by Sanofi using Nuvaxovid and new vaccines created by Sanofi utilizing Novavax’s Matrix-M adjuvant. For Nuvaxovid, Novavax is eligible to receive an additional $25M milestone for the marketing authorization transfer in the U.S. and a $75M milestone payment upon the completion of the technology transfer of the company’s manufacturing process for the COVID-19 vaccine to Sanofi. For combination products developed by Sanofi which include Novavax’s COVID-19 vaccine, Novavax is eligible to receive up to an additional $350M in future milestones. Novavax is eligible for ongoing tiered royalties from sales of both stand-alone COVID-19 and any Sanofi combination products. Further, Novavax is eligible to receive up to $200M for the first four products created by Sanofi utilizing its Matrix-M adjuvant, and up to $210M in milestone payments for each product including Matrix-M thereafter, plus ongoing royalties for all Sanofi products utilizing Matrix-M.