05:14 AM EDT, 05/10/2024 (MT Newswires) -- Novavax ( NVAX ) said early Friday it signed a co-exclusive licensing agreement with Sanofi ( SNY ) to provide broader access to a protein-based non-mRNA adjuvanted COVID-19 vaccine from 2025 onwards.

Shares of Novavax ( NVAX ) surged more than 43% in premarket activity on Friday, while Sanofi ( SNY ) added 0.1%.

The agreement will provide Novavax ( NVAX ) with cash and an equity investment totaling about $1.2 billion, of which $500 million is upfront and up to $700 million in additional development, regulatory and launch milestones. In addition, tiered royalties are payable.

As part of the deal, Novava will have access to additional launch and sales milestone "opportunities" of up to $200 million, plus mid-single-digit royalties, for each additional Sanofi ( SNY ) vaccine product developed under a non-exclusive license with Novavax's ( NVAX ) Matrix-MTM adjuvant technology.

The company said the agreement "accelerates potential for development of a novel COVID-19-Influenza combination product based on authorized vaccines with demonstrated efficacy and tolerability, potentially offering individuals enhanced convenience and protection."

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