Novavax (NASDAQ:NVAX) executives outlined the company’s transition from a COVID-19 vaccine-focused business toward a partnership-driven model centered on its Matrix-M adjuvant technology, with near-term attention on Sanofi’s commercial rollout of NUVAXOVID, combination vaccine development and early oncology research.
Speaking at Citi’s 2026 Biopharma Back to School Conference, Chief Executive Officer John Jacobs said the company has transformed over the past three and a half years by pursuing technology out-licensing, external partnerships and selective internal research investments. Novavax has agreements with Sanofi and Pfizer and is also working through collaborations generated through material transfer agreements, he said.
Sanofi rollout and combination vaccine milestones
Novavax expects Sanofi to build market share methodically rather than achieve a major share gain immediately, Jacobs said. He noted that the current season marks Sanofi’s first full commercial launch cycle following licensure and retail contracting. The company expects the most active vaccination period to occur over the following six to eight weeks.
Sanofi has also confirmed its intention to be among the first companies to develop a COVID-flu combination vaccine, according to Jacobs. He said Sanofi was in late-stage regulatory discussions regarding the timing of a pivotal trial. The start of a clinical trial in either Europe or the U.S. would trigger a $125 million milestone payment to Novavax.
Novavax also anticipates a $75 million milestone next year tied to technology transfer enabling Sanofi to take over full manufacturing of NUVAXOVID. Jacobs said the expected $200 million in payments, excluding royalties and possible revenue from future partnerships, would extend the company’s cash runway into the 2030s.
Bob Walker, Novavax’s head of research and development, said combination-vaccine studies for a European license could be based on immunogenicity rather than efficacy and may be conducted over a single season, followed by regulatory review. He added that non-inferiority immunogenicity could represent another potential licensure pathway in Europe, while the U.S. regulatory path remains evolving.
Pfizer agreement supports platform strategy
Jacobs said Pfizer has selected the first of two potential fields under its Matrix-M partnership with Novavax. The agreement includes up to $500 million in potential milestones, including $250 million per field, as well as a $30 million upfront payment already received. Of the potential milestone payments, $70 million is tied to clinical development and $180 million is tied to sales-related milestones, Jacobs said.
Novavax expects a future catalyst when Pfizer begins a clinical study in the selected field, which would result in a milestone payment. The agreement also includes royalties for two decades following commercialization in each field.
Chief Financial Officer Jim Kelly said Pfizer and Sanofi, two of the four major vaccine companies, have identified Matrix-M as a contributor to vaccine innovation. Sanofi has access to Matrix-M across an uncapped number of fields, while Pfizer has rights covering two potential fields.
Oncology research and C. difficile plans
Novavax is also evaluating Matrix-M in oncology, where the company expects to receive initial preclinical data in coming quarters from internal work and a collaboration with an unnamed top-10 pharmaceutical company that is a global oncology leader.
Walker said Matrix-M has shown activity on the cell-mediated side of the immune system, including T-cell activation. In oncology, he said, CD8 T cells are particularly important because they can kill tumor cells. The company is evaluating standard preclinical measures including tumor size, tumor shrinkage, immune-cell infiltration and surface markers, as well as potential combinations with other therapies.
Jacobs said the company began exploring oncology before recent news from Moderna and Merck, citing the potential for a relatively faster proof of concept than in some other therapeutic categories. He cautioned that Novavax is still determining in which tumor types Matrix-M may be most applicable.
Separately, Novavax plans to advance a pentavalent vaccine candidate targeting Clostridioides difficile, or C. diff, and could enter the clinic as early as 2027. Jacobs described C. diff as an unmet medical need and a potential multibillion-dollar market opportunity. He said Novavax intends to seek a partner to fund later-stage development if possible, though the company has contemplated advancing the program further if needed without exceeding its stated R&D and selling, general and administrative expense targets.
Kelly estimated the global COVID vaccine market at roughly $5 billion this year and the flu market at approximately $5 billion to $6 billion. He said the markets could increasingly converge through combination vaccines, particularly for older and immunocompromised patients.
About Novavax (NASDAQ:NVAX)
Novavax, Inc is a clinical-stage biotechnology company headquartered in Gaithersburg, Maryland, that specializes in the discovery, development and commercialization of next-generation vaccines to prevent serious infectious diseases. Founded in 1987, the company has built a platform based on recombinant nanoparticle technology and its proprietary Matrix-M™ adjuvant to enhance immune responses.
The company’s lead product is NVX-CoV2373, a protein-based vaccine designed to elicit a robust immune response against the SARS-CoV-2 virus.
