Pfizer taps Novavax adjuvant technology in deal worth up to $530M

Novavax (NASDAQ:NVAX) shares rose in early trading after the company reached an agreement to license its vaccine-boosting technology to Pfizer (NYSE;PFE), providing a fresh source of capital for the Maryland-based biotech.

Novavax will receive an upfront payment of $30 million for the non-exclusive rights to its Matrix-M adjuvant, with the potential for an additional $500 million in development and sales milestones.

Under the terms of the deal, Pfizer will utilize the technology—a component that enhances the immune response of vaccines—for up to two undisclosed disease areas.

The agreement also entitles Novavax to tiered high mid-single digit royalty payments on any future sales of Pfizer products that incorporate the adjuvant.

While Pfizer takes sole responsibility for development and commercialization, Novavax will remain responsible for the supply of the Matrix-M material.