Novavax Sells Czech Manufacturing Facility to Novo Nordisk for $200 Million

By Gnaneshwar Rajan and Maggie Fick
(Reuters) – U.S.-based vaccine maker Novavax (NASDAQ:NVAX) announced on Wednesday its decision to sell its manufacturing facility in the Czech Republic to Novo Nordisk (NYSE:NVO), the maker of Wegovy, for $200 million. The company intends to use the proceeds to support its vaccine pipeline.

Novavax has been heavily focused on COVID-19 vaccines but has struggled to keep pace with competitors like Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE), raising concerns about its business viability last year.

The sale follows Novavax’s significant deal with French drugmaker Sanofi (NASDAQ:SNY), which involved licensing its COVID-19 vaccine for at least $1.2 billion, as well as Sanofi acquiring a nearly 5% stake in Novavax. Since the Sanofi deal in May, Novavax shares have risen approximately 88%.

CEO John Jacobs remarked that the facility sale is part of Novavax's strategy to evolve into a more lean and agile organization, focusing on partnering its pipeline assets and technology platform. The company anticipates that the sale will reduce annual operating costs by around $80 million.

Novo Nordisk did not disclose which specific drugs will be manufactured at the Czech facility but noted that its production platform differs from those used for its obesity drug Wegovy and diabetes drug Ozempic. Approximately 300 employees currently working at the Novavax site will transfer to Novo Nordisk as part of this agreement. Novo Nordisk is investing billions to enhance its manufacturing capacity for Wegovy and Ozempic.