GAITHERSBURG, MD - Novavax Inc. (NASDAQ:NVAX), a biotechnology company specializing in biological products with a market capitalization of $1.28 billion, has finalized the sale of its manufacturing campus in Czech Republic to Novo Nordisk (NYSE:NVO) Production Czech s.r.o., a transaction that was completed today. The facility, located at Bohumil, Jevany, was sold for a total consideration of $200 million, alongside the assumption of certain liabilities.
The asset purchase agreement, which was initially dated December 3, 2024, involved the transfer of properties, certain movable assets and equipment, contracts related to the operation of the facility, and certain employees. Novavax's subsidiary, Novavax CZ a.s., was the selling party in this deal.
On the closing date, Novavax received a cash payment of $180 million, after accounting for an initial $10 million payment made in September 2024 and another $10 million held in escrow to be released 12 months post-closing, subject to any claims by the purchaser under the agreement.
Additionally, Novavax was reimbursed approximately $2.6 million for costs incurred in maintaining the facility and its operations between the date of the agreement and the completion of the sale. The sale is part of Novavax's strategic initiatives to streamline operations and focus on core business activities.
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The details of the asset purchase agreement will be disclosed in Novavax's Annual Report on Form 10-K for the year ending December 31, 2024. This report is based on a press release statement.
In other recent news, Novavax has adjusted its vaccine supply agreement with the Australian government, acknowledging the cancellation of certain COVID-19 vaccine doses originally scheduled for delivery and extending the delivery schedule through 2029.
The biotechnology company also achieved a $50M milestone in its partnership with Sanofi (NASDAQ:SNY), related to the progress of its COVID-19 vaccine for children. Analysts from B.Riley and H.C. Wainwright have updated their outlook on Novavax, both maintaining a Buy rating but with B.Riley reducing its price target.
In addition, Novavax has initiated Phase 3 trials for its COVID-19-Influenza Combination (CIC) vaccine and a stand-alone seasonal influenza vaccine. The company is also in discussions with the FDA regarding potential accelerated approval for these vaccines. H.C. Wainwright reiterated a Buy rating and a $19.00 price target on Novavax, expressing optimism about the potential of the randomized Phase 3 trial.
Further, Novavax sold its Czech facility to Danish pharmaceutical company Novo Nordisk for $200M, a strategic move to streamline operations and focus on vaccine development. In its third-quarter earnings report, Novavax revealed a decrease in revenues to $85M, down from $187M in the same quarter of the previous year.
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