SK bioscience expands partnership with Novavax with 6.5 percent stake acquisition

SK bioscience will acquire a 6.5 percent stake, or 6.5 million shares, in Novavax, a U.S. vaccine developer.

SK bioscience CEO Ahn Jae-yong, left, and John C. Jacobs, Novavax CEO, on screen, pose for a photo during a virtual signing ceremony for an $84.5 million stock acquisition agreement. [SK BIOSCIENCE]

SK bioscience will acquire a 6.5 percent stake, or 6.5 million shares, in Novavax, a U.S. vaccine developer.

The $84.5 million stock acquisition deal follows the expiration of the biomanufacturing contract for Covid-19 vaccines between SK bioscience and Novavax during the pandemic.

SK bioscience has been the contract manufacturing organization for Novavax’s vaccines, with the Maryland-based pharmaceutical company becoming one of SK’s largest contract-manufacturing clients.

The duo also extended the existing licensing agreement for Novavax’s vaccine against Covid-19 variants, which has been modified from the previously-signed licensing deal in line with the evolving situation. With the extended agreement, SK bioscience will manufacture undiluted solutions of Novavax’s upcoming Covid-19 variant vaccine as well as Matrix M, an immune booster product in pre-filled syringe form, at the L-House, SK’s manufacturing site in Andong, North Gyeongsang.

SK bioscience will have exclusive rights for the supply and commercial manufacturing of the products in Korea, and non-exclusive rights in Thailand and Vietnam.

As the latest acquisition deal expands the partnership between the two companies, SK bioscience aims to further bolster its foothold in the global market in strategic cooperation with Novavax.

“The latest equity deal and cooperation between the two companies [SK bioscience and Novavax], which are two of a handful of companies that have been able to develop Covid-19 vaccines, will create a significant synergy,” SK bioscience CEO Ahn Jae-yong said.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]