Jan 20 (Reuters) - Novavax said on Tuesday it was entering into a licensing agreement with Pfizer for a substance that helps in boosting immune response in vaccines, sending the vaccine maker's shares up 7% in premarket trading.
Pfizer will gain access to Novavax's Matrix-M adjuvant and have control over all matters relating to the development, manufacture and commercialization of any products that contain the adjuvant, apart from its delivery and supply.
Novavax will receive an upfront payment of
$30 million in the first quarter of 2026, and be eligible to receive up to an additional $500 million in milestone payments as part of the deal.
The deal comes at a time when the company has been facing investor pressure over sluggish sales of its COVID vaccine, Nuvaxovid, as prescriptions declined following new U.S. recommendations for COVID shots.
In November, Hedge fund Shah Capital, Novavax's second-largest shareholder, called on the board to pursue strategic changes, including a potential sale, and warned it could launch a proxy fight if no progress is made in the next four months.
The company's cash and cash equivalents stood at $778 million, as of September 30, 2025, compared with $938 million on December 31, 2024.
Novavax's third-quarter net loss widened to $202 million from $121 million a year earlier, due to non-cash charges of $126 million.
(Reporting by Christy Santhosh in Bengaluru; Editing by Shinjini Ganguli)
