Novavax announces licensing deal with Pfizer for vaccine formulation

Novavax announces licensing deal with Pfizer for vaccine formulation

The move will boost immune responses to vaccines for use in up to two infectious diseases

Maryland-based biotech company Novavax has announced signing an agreement with Pfizer, allowing the latter access to its technology. Pfizer will now have access to Novavax's Matrix-M adjuvant through the non-exclusive arrangement.

John Jacobs, Novavax CEO, stated that during his three years at the company, Novavax received numerous inquiries from potential partners.

While Novavax will receive an upfront payment of $30 million in the first quarter of 2026, it will be eligible to receive up to an additional $500 million. However, that’s conditional to certain targets that are a part of the deal. Thus, on quarterly net sales, it will receive tiered high mid-single-digit percentage royalties.

Meanwhile, Pfizer will have control over the development, manufacturing and commercialization of its products, comprising the adjuvant. This would be apart from the delivery and supply of Matrix-M.

Vaccine adjuvants have received scrutiny from allies of US Health Secretary and longtime anti-vaccine activist Robert F. Kennedy Jr. because many of them contain aluminum, though Novavax's technology does not. Vaccine adjuvants are known to enhance the body's response to an inoculation.

Elaine O'Hara, Chief Strategy Officer, Novavax, said, "It’s been a significant topic of debate. Our position is that we have a non-alum-based adjuvant, a very robust alternative for companies."

For quite some time, Novavax has faced investor pressure over sluggish ⁠sales of its Covid-19 ⁠vaccine, Nuvaxovid. That was because prescriptions declined after the US posed restrictive recommendations.

Novavax had signed a licensing deal of $1.2 billion with French drugmaker Sanofi in 2024, giving it access to Nuvaxovid.

Analysts at H.C. Wainwright expressed that the Pfizer deal was similar to the Sanofi agreement. He added, “It could help secure the long-term future of Novavax and lead to more licenses this year."

Recently, Novavax's second-largest shareholder, Shah Capital, had asked the board to pursue strategic changes, including a potential sale. The hedge fund had warned that if no progress was seen in the next four months, it could result in a proxy fight.