Novavax (NASDAQ:NVAX) shares climbed about 5% on Tuesday after the biotech group disclosed a non-exclusive licensing agreement with Pfizer (NYSE:PFE) covering its Matrix-M adjuvant technology.
Under the terms of the agreement, Pfizer will be able to deploy Novavax’s Matrix-M adjuvant across as many as two disease areas within its own product portfolio. Novavax will receive an upfront payment of $30 million and is eligible for up to $500 million in additional development and commercial milestone payments.
In addition to milestones, Novavax may earn tiered royalties in the high mid-single-digit percentage range on sales of any Pfizer products that incorporate the Matrix-M technology. Pfizer will take full responsibility for development and commercialization, while Novavax will supply the Matrix-M adjuvant.
“The Novavax team is excited about this agreement with Pfizer to access our Matrix-M technology in its future development plans,” said John C. Jacobs, president and chief executive officer of Novavax. “This agreement, along with other recently formed partnerships, is further evidence of the potential utility of Matrix-M for the development of new products.”
The deal marks another commercial validation of Novavax’s Matrix-M adjuvant, which is designed to boost immune responses in vaccines. It follows similar collaborations with other pharmaceutical companies and broadens the potential revenue opportunities for Matrix-M beyond Novavax’s own vaccine pipeline.