Novavax, Inc. (NASDAQ:NVAX) Q1 2024 Earnings Call Transcript

Vernon Bernardino: Perfect. And you won’t be able to comment on what you think the addition of metric to Sanofi’s flu quadrivalent could be?

John Trizzino: No, we’re not going to comment on that today, Vernon.

Vernon Bernardino: Okay. That is all the questions and congratulations. Thank you.

John Jacobs: Thank you, Vernon and one comment to thank you for asking. And importantly, again, we don’t want anyone to walk away without total clarity that this deal has tremendous value, multibillion-dollar potential deal for Novavax. Including the upfront payments of the $1.3 billion and then well beyond that anticipated royalties of significant value, we think even greater value than those upfront payments. And then on top of that, to your point, Vernon, what they could do with Matrix-M, and we think there’s immense potential with Sanofi as a powerhouse in vaccine development and commercialization, and we’re very excited about some of the concepts and ideas they may be contemplating about what to do with Matrix-M. And with each new Matrix-M product they would choose to bring forward should they do so.

We have the potential for up to $200 million in onetime milestones, and ongoing flat royalty for years to come. So those pieces of value are absolutely critical, and that’s what makes this deal well beyond the upfront milestones and payments that everyone has been talking about — a multibillion-dollar deal we feel for Novavax. Thank you so much everyone for your questions. Erika, I’ll turn it back to you and then the operator to close.

Erika Schultz: This concludes our question-and-answer session. I would like to turn the conference back over to John Jacobs for any closing comments.

John Jacobs: No. Thank you, everyone. Thank you for joining us today. We appreciate your time. We’ll keep working with humility, diligence and all of our efforts to return value to our loyal shareholders. And I want to thank all of our employees at Novavax for their time, energy and effort to get us to this next stage in the beginning of a new chapter for the future of our company. Thank you, everyone for joining us today.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect. Thank you.