In a strategic move to streamline its operations, Novavax (NASDAQ:NVAX), a U.S. vaccine manufacturer, has announced the sale of its manufacturing plant in the Czech Republic to the Danish pharmaceutical company Novo Nordisk (NYSE:NVO).
The transaction is valued at $200 million. Novavax plans to channel the funds from this sale into its vaccine development pipeline.
The company, known for its work on COVID-19 vaccines, has faced challenges competing with industry leaders like Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE). Concerns were raised last year over Novavax's financial sustainability.
This sale is a part of Novavax's broader strategy to reshape its business structure. It follows a significant licensing agreement with Sanofi (NASDAQ:SNY), a French pharmaceutical giant. Under the deal, Sanofi took nearly a 5% ownership stake in Novavax in return for rights to its COVID-19 vaccine, amounting to at least $1.2 billion.
Since the agreement with Sanofi in May, Novavax's stock has seen a considerable upswing, with an increase of approximately 88%.
John Jacobs, Novavax's Chief Executive Officer, emphasized the company's commitment to becoming a more efficient entity.
"The decision to sell the Czech Republic manufacturing facility aligns with our previously announced commitment to evolve Novavax into a more lean and agile organization focused on partnering our pipeline assets and technology platform," Jacobs stated.
The sale is expected to reduce Novavax's annual operating expenses by around $80 million, aiding in its endeavor to streamline operations and focus on its core capabilities in vaccine development.
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