10:06 AM EDT, 05/10/2024 (MT Newswires) -- (Updates with stock movement in headline and first paragraph.)

Novavax ( NVAX ) shares soared more than 129% in recent trading after the company 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.

Under the agreement, Novavax ( NVAX ) will get an upfront payment of $500 million and up to $700 million in additional development, regulatory and launch milestone payments. In addition, tiered royalties are payable and Sanofi ( SNY ) will take a minority equity investment of less than 5% in Novavax ( NVAX ), according to Novavax ( NVAX ).

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

The company said the agreement "accelerates potential for development of a novel COVID-19-Influenza combination product based on authorized vaccines."

Price: 10.26, Change: +5.79, Percent Change: +129.53