Novavax shares shot more than 125% higher Friday on news of a Covid-19 vaccine licensing agreement with Sanofi.
The agreement involves co-development of Covid/flu vaccine combinations for both companies. Sanofi will be licensed to co-commercialize the vaccine worldwide.
As part of the agreement, Sanofi will take a minority equity position in Novavax. It will provide Novavax and upfront payment of $500 million. Milestone, regulatory and other payments could add another $700 million, putting the deal's total potential at $1.2 billion.
Novavax, a Maryland-based biotech, also reported its first quarter results. The company halved its net loss to around $148 million — in line with expectations. Revenue rose 16% to $93.86 million, below views for $101.6 million.
Novavax slashed its full-year revenue outlook to between $400 million and $600 million, down from an $800 million to $1 billion range.
Novavax shares ended Thursday down nearly 99% from a February 2021 high above 331. The stock soared 126% Friday, clearing 10 for the first time since September.
Sanofi edged up 0.4% to 48.86. The stock is effectively flat year to date, and down about 9% over the past 12 months.
