On Wednesday, Novavax, Inc. (NASDAQ:NVAX) agreed to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk A/S (NYSE: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.
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The agreement provides Novavax 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 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 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.
Last month, Novavax 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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