Novavax (NVAX) shares added ~5% in the premarket on Tuesday after the COVID-19 vaccine maker reached a licensing deal with Pfizer (PFE) regarding the use of its Matrix-M adjuvant in the New York-based pharma giant’s products.
As part of the deal, Pfizer (PFE) will obtain a non-exclusive license to use Matrix-M in products across up to two disease areas by paying $30M upfront and up to $500M in milestone-based payments to Novavax (NVAX).
Additionally, Maryland-based Novavax (NVAX), whose protein-based COVID-19 shot Nuvaxovid is also based on Matrix-M, will receive tiered high mid-single-digit percentage royalties on sales of any Pfizer (PFE) products that include the adjuvant.
The agreement further indicates that Pfizer (PFE) is entirely responsible for the development and sales of its Matrix-M-based products using the adjuvants supplied by Novavax (NVAX).