Novavax sells Czech production plant to Novo Nordisk for $200M

Novavax has sold its Czech manufacturing facility to Novo Nordisk for $200 million, including the site’s 300 employees, in a move to cut costs and focus on vaccine development.

Novavax says the move will help the company focus on developing its protein-based vaccines, which use its Matrix-M adjuvant. The sale will bring in $190 million this year and another $10 million in 2025. It will also save the company around $80 million in yearly operating costs.

“The decision to sell the Czech Republic manufacturing facility aligns with our commitment to evolve Novavax into a lean and agile organisation focused on partnering our pipeline assets and technology platform,” said Novavax CEO John Jacobs.

Novo Nordisk plans to use the Bohumil site for mammalian production of current and future products. However, the company confirmed it will not produce its diabetes and obesity drugs, Ozempic and Wegovy, at this facility.

Novavax originally bought the site in 2020 for $167 million to produce its COVID-19 vaccine, Nuvaxovid. But delays and competition from Pfizer-BioNTech and Moderna’s mRNA vaccines made it difficult for Novavax to keep up.

This sale comes after a tough period for Novavax, during which it partnered with Sanofi to co-commercialise Nuvaxovid and develop new vaccines. The partnership includes $500 million upfront, up to $700 million in milestone payments, and royalties.

For Novo Nordisk, this acquisition is part of its effort to expand its manufacturing capacity for a wider range of products. In separate statements to Reuters and Fierce Pharma, Novo Nordisk confirmed that the Czech plant will not manufacture Novo Nordisk’s blockbuster GLP-1 drug products Ozempic and Wegovy. A company spokesperson states that the facility will “provide mammalian production capacity for existing and future products.”

Source:

Novavax scores $200M as it hands over keys to Czech production plant—along with 300 employees—to Novo Nordisk [Accessed December 16, 2024] https://www.fiercepharma.com/pharma/novavax-scores-200m-it-hands-over-keys-czech-production-plant-along-300-employees-novo