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- Agreements signed to transfer one U.S.-based facility and sell certain equipment netting $60 million in cash and resulting in future cash savings of $230 million
- Novavax headquarters to remain in Gaithersburg, Md.
Novavax, Inc. (Nasdaq: NVAX) today announced that it has further executed against its planned transformation into a lean, agile operating model by signing definitive agreements related to one of its Maryland-based locations (700 Quince Orchard Road, Gaithersburg, Md.) and surrounding property. The site consolidation efforts are part of Novavax's corporate growth strategy, announced last year, that allow the Company to focus on research and development (R&D) efforts and partnerships by retaining the necessary capabilities in the leanest and most cost-effective manner. In support of this strategy, the agreements will result in $60 million in payments to Novavax and is expected to result in future cost savings of $230 million over 11 years related to both lease expense and facility operating costs.
"This planned site consolidation aligns with our commitment to transform Novavax into a more lean and agile organization and is yet another proof point that we continue to deliver against our corporate growth strategy," said John C. Jacobs, President and Chief Executive Officer, Novavax. "This consolidation of our facilities in Maryland results in upfront cash and significant cash savings related to our lease liabilities and future operating costs while enabling Novavax to better focus on pipeline and technology investments."
Assignment of the lease for this facility and sale of certain related assets are both expected to close in January of 2026 and result in $40 million in payments to Novavax. Sale of property adjacent to the headquarters building is expected to close in the fourth quarter of 2025 and result in a $20 million payment to Novavax.
About Novavax
Novavax, Inc. (Nasdaq: NVAX) tackles some of the world's most pressing health challenges with its scientific expertise in vaccines and its proven technology platform, including protein-based nanoparticles and its Matrix-M® adjuvant. The Company's growth strategy seeks to optimize its existing partnerships and expand access to its proven technology platform via R&D innovation, organic portfolio expansion in infectious disease and beyond, and forging new partnerships and collaborations with other companies. Please visit novavax.com and LinkedIn for more information.
Forward-Looking Statements
Statements herein relating to the future of Novavax, its operating plans and prospects, regarding the expected timing of, and the total anticipated impairment charges associated with, the transactions described herein. Novavax cautions that these forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, challenges or delays related to the requested postmarketing commitment; antigenic drift or shift in the SARS-CoV-2 spike protein, challenges satisfying, alone or together with partners, various safety, efficacy and product characterization requirements, including those related to process qualification and assay validation, necessary to satisfy applicable regulatory authorities; difficulty obtaining scarce raw materials and supplies; resource constraints, including human capital and manufacturing capacity, on the ability of Novavax to pursue planned regulatory pathways; challenges or delays in obtaining regulatory authorization for a JN.1 protein-based COVID-19 vaccine or for future COVID-19 variant strain changes; challenges or delays in clinical trials; manufacturing, distribution or export delays or challenges; Novavax's exclusive dependence on Serum Institute of India Pvt. Ltd. for co-formulation and filling and the impact of any delays or disruptions in their operations on the delivery of customer orders; and those other risk factors identified in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Novavax's Annual Report on Form 10-K for the year ended December 31, 2024, as updated by the information identified in the "Risk Factors" section in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, each as filed with the Securities and Exchange Commission (SEC). We caution investors not to place considerable reliance on forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov and www.novavax.com, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document, and we undertake no obligation to update or revise any of the statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors and others should give careful consideration to these risks and uncertainties.
Contacts:
Investors
Luis Sanay, CFA
240-268-2022
ir@novavax.com
Media
Yvonne Sprow
(844) 264-8571
media@novavax.com
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SOURCE Novavax, Inc.
