(Reuters) – COVID-19 vaccine maker Novavax (NASDAQ:) mentioned on Wednesday it should promote its manufacturing facility in Czech Republic to Wegovy-maker Novo Nordisk (NYSE:) for $200 million and use the proceeds for its vaccine pipeline.
The corporate has struggled to maintain tempo with rival vaccine makers Moderna (NASDAQ:) and Pfizer (NYSE:), which reported greater than $3 billion in mixed gross sales for his or her mRNA COVID-19 pictures within the third quarter. It had additionally raised doubts about its capability to remain in enterprise in 2023.
The divestiture of the Czech facility follows U.S.-based Novavax’s licensing deal price not less than $1.2 billion with French drugmaker Sanofi (NASDAQ:) for its COVID-19 vaccine, in alternate for the latter taking a virtually 5% stake within the agency.
Novavax shares have risen about 88% for the reason that Sanofi deal in Could.
“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 mentioned in a press release.
The corporate expects the sale of the unit to end in annual working value reductions of about $80 million.
Novo Nordisk didn’t instantly reply to a Reuters request for remark.
