Novavax acquires Praha Vaccines

Nasdaq-listed late-stage biotechnology company Novavax has completed the purchase of Czech Republic-based Praha Vaccines.

Under the terms of the transaction, the buyer paid around USD 167.00 million in cash for the business, including a 150,000 square foot manufacturing facility and associated assets in Bohumil.

Praha Vaccines was previously part of the Cyrus Poonawalla Group and makes vaccines for infectious diseases.

Novavax is buying the business in a bid to increase its manufacturing capacity as it seeks to develop a vaccine for the Covid-19 coronavirus, which has resulted in hundreds of thousands of deaths worldwide since originating at the end of 2019.

Chief executive Stanley Erck said: “This acquisition provides the vital assets required to produce more than 1.00 billion doses per year.”

Some 150 staff are joining Novavax as a consequence of the deal.

The buyer is in the process of developing a candidate to be used as a vaccine for Covid-19, known as NVX-CoV2373, and believes the facility being acquired as part of the Praha Vaccines purchase will give it annual capacity of more than 1.00 billion doses of antigen from 2021.

Zephyr, the M&A database published by Bureau van Dijk, shows that the most valuable deal targeting a manufacturer of pharmaceutical preparations to have been announced worldwide since the beginning of 2020 is worth USD 3.83 billion.

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That transaction saw Yunnan State-owned Equity Operation Management agree to pick up a 25.1 per cent stake in Yunnan Baiyao Group back in April.

This was followed by a USD 2.28 billion investment in Bayer by Amundi, which closed in March and saw the buyer acquire a 3.2 per cent share of the German company.

Other companies in the sector to have been targeted since the beginning of this year include the likes of Shenzhen Hepalink Pharmaceutical Group and Glycom, in deals worth USD 1.60 billion and USD 843.00 million, respectively.

© Zephus Ltd

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