Novavax Stock Rises, Boosts Retail Sentiment On $200M Czech Plant Sale To Novo Nordisk
By Stocktwits Inc | First Published Dec 4, 2024, 7:03 PM ISTThe sale is expected to reduce Novavax’s annual operating costs by $80 million.
Novavax Inc. shares climbed over 4% pre-market Wednesday following the announcement of a $200 million deal to sell its Bohumil, Czech Republic manufacturing facility to Novo Nordisk.
The definitive agreement includes the transfer of a 150,000-square-foot recombinant protein manufacturing plant, related assets, infrastructure, and workforce.
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The transaction will provide Novavax with $190 million in cash by 2024 and an additional $10 million in 2025, offering the biotech company much-needed non-dilutive capital.
The sale is expected to reduce Novavax’s annual operating costs by $80 million, with the transition to Novo Nordisk slated for completion by Dec. 30.
Retail sentiment on Stocktwits turned ‘bullish’ early Wednesday, with a surge in message volume pushing NVAX into the top five trending tickers.
The announcement follows a mixed earnings season for Novavax. The company recently reported quarterly earnings and revenue that beat Wall Street expectations but tempered investor enthusiasm by cutting its full-year revenue forecast.
However, optimism remains around its combination COVID-19 and flu vaccine, which is back on track after resolving an FDA-imposed clinical trial hold. A Phase 3 trial is planned to start soon.
As of Sept. 30, Novavax had $924 million in cash and equivalents, significantly higher than the $584 million at the end of 2023.
The stock has gained 67% year-to-date, outperforming the broader S&P 500’s 27% increase and the Nasdaq’s nearly 32% rise.
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