Sanofi Licencing Agreement Increases the Worth of Novavax

After Sanofi reached a licencing agreement valued up to $1.2 billion to market the Covid vaccine developed by the vaccine creator they saw Novavax shares almost double with the combination of the shared knowledge to create its own combined shot.

In the aftermath of the pandemic Covid vaccination market, where drug manufacturers are putting more emphasis on combination injections against two or more transmissible illnesses, the alliance boosts Sanofi, one of the major vaccine producers worldwide by revenue.

The firms indicated on Friday that Sanofi, based in Paris, would spearhead the sales drive of Novavax’s Covid vaccine starting in the majority of nations. Furthermore, they were granted the exclusive right to include the US company’s vaccine equipment with its flu injections and other infectious illness jabs.

$500 million in immediate payments and an equity investment will be given to Novavax; the other $700 million will be paid when specific regulatory and technological milestones are met. The company will also receive hefty royalties from the sales of its Covid injection.