Novavax Inks Deal With India's Serum Institute To Make Coronavirus Vaccine Available In Low, Middle Income Countries

Novavax, Inc NVAX disclosed Wednesday it had entered into an agreement with the Serum Institute of India Private Limited for development, distribution, and commercialization of its COVID-19 vaccine in several countries.

What Happened

SII will gain exclusive rights to Maryland-based drugmaker's vaccine and Matrix-M adjuvant during the "Pandemic Period," as defined by the World Health Organization in India, under a deal signed July 30, Novavax stated in a filing with the United States Securities and Exchange Commission.

The Indian vaccine maker will also receive non-exclusive rights in all countries except for upper-middle or high-income countries, as designated by the World Bank.

On Tuesday, the company disclosed its NVX-CoV2373 coronavirus vaccine had elicited “robust antibody responses” in participants of the Phase 1 clinical trial.

Why It Matters

Novavax CEO Stanley Erck said last month that the drugmaker is capable of producing 100 million doses by the end of the year. It has received $1.6 billion in government funding to support its vaccine efforts. 

JPMorgan analyst Eric Joseph raised the price target on Novavax shares from $105 to $275 and upgraded the rating on the stock to Overweight from Neutral on Wednesday.

SII also has a licensing agreement with AstraZeneca plc AZN to supply one billion doses of its coronavirus vaccine, developed in partnership with Oxford University, to low-and-middle-income countries, with a commitment to supply 400 million doses before 2020.

Price Action 

Novavax shares closed nearly 10.4% higher at $173.49 on Wednesday and fell 0.46% in the after-hours session.