Novavax sells Czech manufacturing facility to Novo Nordisk for $200 mn

COVID-19 vaccine maker Novavax said on Wednesday it will sell its manufacturing facility in Czech Republic to Wegovy-maker Novo Nordisk for $200 million and use the proceeds for its vaccine pipeline. 

The company has struggled to keep pace with rival vaccine makers Moderna and Pfizer, which reported more than $3 billion in combined sales for their mRNA COVID-19 shots in the third quarter. It had also raised doubts about its ability to stay in business in 2023. 

The divestiture of the Czech facility follows US-based Novavax's licensing deal worth at least $1.2 billion with French drugmaker Sanofi for its COVID-19 vaccine, in exchange for the latter taking a nearly 5 per cent stake in the firm. 

 

Novavax shares have risen about 88 per cent since the Sanofi deal in May. 

"The decision to sell the Czech Republic manufacturing facility aligns with our previously announced commitment to evolve Novavax into a more lean and agile organization focused on partnering our pipeline assets and technology platform," CEO John Jacobs said in a statement. 

The company expects the sale of the unit to result in annual operating cost reductions of about $80 million. 

Novo Nordisk did not immediately respond to a Reuters request for comment. 

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