Novavax (NASDAQ: NVAX) works together with Japanese drug maker Takeda Pharma (NYSE: THANKS) to sell Novavax’s coronavirus vaccine, NVX-CoV2373, as a prevention for COVID-19 in Japan.
Takeda will be responsible for producing the protein part of the vaccine and will receive some assistance from the Japanese Ministry of Public Health, Labor and Welfare. The agency has pledged to help fund the transfer of production technology, establishment of infrastructure, and scaling up manufacturing for the fax.
Novavax will be responsible for delivering Matrix-M, the adjuvant injected with the protein-based vaccine to increase the patient’s immune response to the viral protein. Early stage results suggested that uptake of Matix-M resulted in similar immune responses, even when the protein portion of the vaccine was reduced by one-fifth.
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Assuming that the vaccine successfully makes its way through the process of clinical trial, Takeda will be responsible for submitting regulations of the medicine in Japan. If the vaccine is approved in Japan, Takeda expects to produce more than 250 million doses of the coronavirus vaccine per year.
Through the announced deal on Friday, Novavax will receive non-public payments based on development and commercial milestones, as well as a portion of the proceeds of the fax.
Unfortunately, without additional details about the deal, it is extremely difficult to appreciate Novavax’s deal with Takeda. Reading between the lines, however, seems to signal the deal that the Japanese drugmaker is endorsing Novavax’s technology as one of the frontrunners in the race to develop the first vaccine for coronavirus.
