GCVRZ - Novavax Ditches 'Going Concern' Embraces Sanofi Safety Net (Rating Upgrade)
2024-05-10 13:50:51 ET
Summary
- Novavax, Inc.'s Sanofi partnership provides much-needed financial support via upfront and milestone payments, stabilizing its finances.
- Combination vaccines are set to be an essential market, but competitors like Pfizer and Moderna are further along.
- The deal shifts Novavax's strategy to licensing technology, reducing risk but surrendering potential competitive advantages.
- The Sanofi agreement moves Novavax from "Strong Sell" to "Hold," indicating a cautious improvement in its outlook.
Novavax Secures Lifeline with Sanofi Collaboration, Recalibrates Strategy
Novavax, Inc. ( NVAX ) stock is up more than 100% after the company released its first-quarter earnings report , which included a welcomed surprise . The company announced a major agreement with pharmaceutical giant Sanofi ( SNY ). The two will co-commercialize Novavax's COVID-19 vaccine, and Sanofi was granted:
Novavax Ditches 'Going Concern,' Embraces Sanofi Safety Net (Rating Upgrade)"a sole license to Novavax's adjuvanted COVID-19 vaccine for use in combination with Sanofi's flu vaccines while Novavax retains the right to and is developing its own COVID-19-Influenza Combination vaccine candidate."