Novavax announced today that it signed a definitive agreement to sell a European manufacturing plant to Novo Nordisk for $200 million.
The agreement centers around the company’s facility in Bohumil, Czech Republic, about 25 miles outside of Prague. It includes a transfer of assets, including a 150,000-square-foot, state-of-the-art recombinant protein manufacturing facility. That includes support buildings and the existing workforce and all related and required infrastructure.
Novavax said the agreement provides it with significant, non-dilutive capital to enable it to advance its corporate growth strategy. The company aims to drive value from its early- and late-stage pipeline using its proven technology platform with the Matrix-M adjuvant and nanoparticle protein-based technology.
The deal includes an initial $190 million cash payment in 2024, then an additional $10 million in 2025. Novavax expects the sale to result in annual operating cost reductions of approximately $80 million.
Following the closing of the deal — expected by Dec. 20, 2024 — Novavax expects to fully transfer responsibility for the facility to Novo Nordisk.
“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,” said John C. Jacobs, president and CEO, Novavax. “We are thankful to our dedicated colleagues in the Czech Republic who have contributed to Novavax’s mission of delivering our technology to address unmet needs. We look forward to working with Novo Nordisk to ensure a successful transition.”
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