Investing.com — Novavax (NASDAQ:NVAX), a biotechnology company known for its protein-based vaccines, has entered into an agreement to sell its manufacturing facility in Bohumil, Czech Republic, to Novo Nordisk (NYSE:NVO) (CSE:NOVOb) for $200 million.
The deal is part of Novavax’s broader strategy to streamline its operations and focus on its core pipeline and technology platform.
The transaction includes the transfer of a 150,000-square-foot, state-of-the-art facility specializing in recombinant protein manufacturing, along with related infrastructure and the existing workforce.
As part of the agreement, Novo Nordisk will pay $190 million upfront in 2024, with an additional $10 million due in 2025.
Novavax has described the sale as a key move in its efforts to become a leaner and more agile organization.
The company said that the transaction would not only provide a significant cash infusion but also result in annual operating cost savings of approximately $80 million.
“We are grateful to our colleagues in the Czech Republic for their contributions and look forward to collaborating with Novo Nordisk to ensure a seamless transition,” said John C. Jacobs, Novavax’s President and CEO in a statement.
Novo Nordisk will assume full responsibility for the facility upon the deal’s expected closure by December 30, 2024.
