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Law360 (May 27, 2020, 5:20 PM EDT ) Novavax has agreed to buy Czech Republic-based Praha Vaccines for $167 million, and the duo will work with vaccine manufacturer Serum Institute of India to develop and mass produce a potential vaccine for COVID-19, the companies said Wednesday.
The all-cash deal sees Novavax Inc., which is headquartered in Gaithersburg, Maryland, picking up Praha Vaccines AS from Cyrus Poonawalla Group, which is the parent company of Serum Institute of India Pvt. Ltd., according to a statement. The acquisition includes a biologics manufacturing facility and associated assets in Bohumil, Czech Republic, that will be used as part of the production of Novavax's in-development COVID-19 vaccine candidate, NVC-CoV2373. The facility features 150,000 square feet of space, and the campus on which it sits includes additional support buildings.
"Manufacturing capacity is a critical component of our strategy to deliver a vaccine for the COVID-19 pandemic," said Stanley C. Erck, president and CEO of Novavax. "This acquisition provides the vital assets required to produce more than 1 billion doses per year."
In addition to ramping up production at the facility in Bohumil by the end of this year, Novavax intends to forge ahead with efforts to expand capacities at sites in the U.S. and Asia, Erck said. The company hopes to be able to manufacture up to 100 million vaccine doses by the end of this year.
"We believe Novavax and Praha reflect the ideal complement of capabilities and expertise to advance innovative vaccines that are vitally needed at this critical time," said Cyrus Poonawalla, chairman and founder of the Cyrus Poonawalla Group. "We are confident that the technologies and employees are in good hands and look forward to continuing our collaborations with Novavax."
The deal comes the same week that Novavax announced enrollment of the first participants in a clinical trial for its coronavirus vaccine candidate. Preliminary results from Phase 1 of the trial are expected this July, according to a Tuesday statement.
Earlier this month, Novavax revealed that the Coalition for Epidemic Preparedness Innovations had agreed to contribute as much as $384 million in additional funding to advance the company's research on the vaccine candidate. That investment came on top of $4 million that CEPI provided to Novavax in March.
"CEPI plays a vital role in advancing innovative technologies against the COVID-19 pandemic," Erck said in a May 11 press release. "Their partnership and support allows Novavax to leverage its innovative vaccine platform and expertise in this global crisis.
Legal counsel information was not available Wednesday, and representatives for both companies did not immediately respond to requests for further information.
--Editing by Abbie Sarfo.
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