Novavax Sells Czech Facility to Novo Nordisk for $200 Million

American vaccine manufacturer Novavax announced a strategic move to optimize its operations by selling its production facility in the Czech Republic to Danish pharmaceutical company Novo Nordisk. The transaction is valued at $200 million. Novavax plans to direct the funds obtained from this sale toward its vaccine development portfolio.

The company, known for its work on COVID-19 vaccines, has struggled to compete with industry leaders like Moderna and Pfizer. Concerns had emerged last year regarding Novavax's financial sustainability. This sale is part of Novavax's strategy to reshape its business structure and comes after a significant licensing agreement with French pharmaceutical giant Sanofi. Under this agreement, Sanofi acquired the rights to Novavax's COVID-19 vaccine for at least $1.2 billion, obtaining approximately a 5% stake in the company.

Since the agreement with Sanofi in May, Novavax's stock value has seen a significant increase of about 88%. Novavax's CEO, John Jacobs, emphasized the company's commitment to becoming a more efficient organization. "The decision to sell the production facility in the Czech Republic aligns with our commitment to transform Novavax into a leaner and more agile organization focused on our drug development portfolio and technology platform," Jacobs stated.

The sale is expected to reduce Novavax's annual operating expenses by approximately $80 million and contribute to the company's efforts to optimize operations and focus on core vaccine development capabilities.