Novavax Receives $384M For Coronavirus Vaccine Program In CEPI's 'Single Biggest Investment' To Date

Novavax, Inc. NVAX, which is in the race for developing a vaccine for the new coronavirus, announced Monday afternoon new funding for its vaccine program.

The company said the Coalition for Epidemic Preparedness Innovations, or CEPI, will invest up to $384 million, on top of $4 million it invested in March, to advance clinical development of NVX-CoV2373, its vaccine for the SARS-CoV-2, the virus that causes COVID-19.

Novavax also reported better-than-expected first-quarter EPS and sales results.

Why It's Important

Novavax said the most recent CEPI funding will help rapid scale-up of the NVX-CoV2373 vaccine antigen, as well as its proprietary Matrix-M adjuvant, which is expected to enhance immune responses by stimulating high levels of neutralizing antibodies.

The company is also planning to use the funding for financing a Phase 1/2 trial in Australia, with the Phase 1 portion starting in May. It also plans to use the funding for the Phase 2 portion of the study to be conducted in multiple countries, contingent on positive top-line results from the Phase 1 study, due in July.

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Novavax revealed plans to develop processes to scale up manufacturing with an objective of producing up to 100 million doses by the end of 2020. By 2021, the company hopes to scale up further in multiple locations to produce over 1 billion doses.

"The expansion of our partnership with Novavax represents CEPI's single biggest investment to date," said Richard Hatchett, CEO of CEPI.

Novavax also reported better-than-expected first-quarter EPS and sales results.

In after-hours trading, Novavax shares were ripping higher by 39.39% to $34.15.