On Wednesday, Novavax, Inc. ( NVAX ) agreed to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk A/S ( NVO ) for $200 million.

The agreement includes transferring assets, including a 150,000-square-foot recombinant protein manufacturing facility with support buildings, the existing workforce, and all related and required infrastructure.

Also Read: FDA Gives Green Signal To Novavax’s COVID-19-Influenza Combo Vaccine Late-Stage Trial

The agreement provides Novavax ( NVAX ) with significant, non-dilutive capital, further enabling the company to advance its corporate growth strategy and drive value from its early—and late-stage pipeline using its proven technology platform, which consists of Matrix-M adjuvant and nanoparticle protein-based technology.

In addition to the $190 million cash payment in 2024 and an additional $10 million in 2025, Novavax ( NVAX ) expects the sale of the facility to result in annual operating cost reductions of approximately $80 million.

“The decision to sell the Czech Republic manufacturing facility aligns with our previously announced commitment to evolve Novavax ( NVAX ) into a more lean and agile organization focused on partnering our pipeline assets and technology platform,” said John C. Jacobs, President and Chief Executive Officer, Novavax ( NVAX ).

Last month, Novavax ( NVAX ) lowered its 2024 revenue guidance to $650 million—$700 million, compared to prior guidance of $700 million—$800 million and a consensus of $761.5 million.

Price Action: NVAX stock is down 2.32% at $8.215 at the last check on Wednesday.

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