Novavax announces progress on Sanofi agreement

Novavax (NVAX) announced progress on its collaboration and license agreement with Sanofi (SNY) regarding Novavax’s Matrix-M adjuvant. The companies have amended their CLA to expand Sanofi’s license to include use of Novavax’s Matrix-M adjuvant in Sanofi’s pandemic influenza vaccine candidate program. Sanofi recently received funding from the Biomedical Advanced Research and Development Authority within the Administration for Strategic Preparedness and Response, part of the U.S. Department of Health and Human Services, for early-stage work on this vaccine candidate. The CLA amendment enables Sanofi’s use of Matrix-M in early-stage development of Sanofi’s pandemic influenza vaccine candidate(s) through Phase 2. If Sanofi enters Phase 3 clinical development, the parties will negotiate license rates and financial terms. The amendment broadens the partnership between Novavax and Sanofi and adds to the terms of the original agreement that specifies that 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. Sanofi is currently exploring additional opportunities with Matrix-M.