Shares of the pharmaceutical company Novavax are experiencing dramatic growth in the American premarket trading. The company, which warned last year that falling sales of a covid-19 vaccine would hurt its finances, has negotiated a $1.4 billion deal with another pharmaceutical firm. It is supposed to be a joint application of the vaccine against covid-19 and the flu.
Stocks Novavax we see US trading strengthening in the premarket up nearly 150% to $11 per share. In the last 12 months, the shares have written off almost half of their value.
“The two companies will work on a combined covid-19 and flu vaccine,” reports Bloomberg. But the agreement is much broader. It includes a licensing agreement to jointly commercialize Novavax’s existing covid-19 vaccine and for its “approved” use with Sanofi’s flu vaccine.
Sanofi will make a 5% equity investment in Novavax. It has 500 million dollars to subscribe, and up to 700 million dollars to invest in development. Starting in 2025, Sanofi is to cover additional costs for research, development and sales.
“The timing of the transaction raises questions regarding the generally declining sales of vaccines against the covid-19 disease, but combined vaccination is an interest,” analysts said, according to which it will strengthen and make the French pharmaceutical manufacturer more attractive.
Shares are strengthening only marginally to one percent. she reportedly agreed.
In its quarterly results, Novavax reported a loss per share of $1.05, versus expectations of $1.06, versus a loss of $3.41/share a year ago. For the full fiscal year after the first fiscal quarter, the company raises its sales outlook to USD 970 million to USD 1.17 billion from USD 0.8 to USD 1.0 billion so far.
Chart: Long-term performance of Novavax shares (USD/share)
Source: Patria.cz
Tags: Novavax shares surge deal Sanofi combine covid19 flu vaccine
