Exhibit 99.1
Contact:
|
Tricia Richardson | |
| Novavax, Inc. | ||
| 240-268-2031 |
NOVAVAX AND ALLERGAN TERMINATE
MANUFACTURING SUPPLY AGREEMENT FOR ESTRASORB
Action allows Novavax to focus on its vaccine business and reduce cash burn
MANUFACTURING SUPPLY AGREEMENT FOR ESTRASORB
Action allows Novavax to focus on its vaccine business and reduce cash burn
Rockville, MD - (October 25, 2007) —Novavax, Inc. (Nasdaq: NVAX) announced today that it has
agreed with Allergan, Inc. to terminate its manufacturing supply agreement for Estrasorb.
Estrasorb was previously licensed by Novavax to Esprit Pharma, Inc. (recently acquired by Allergan,
Inc.) in 2006 and is an approved estrogen product for relief of moderate to severe vasomotor
symptoms (hot flashes) associated with menopause. Under the termination agreement, Novavax will
complete the manufacture of remaining orders for the product and plans to close its Philadelphia
manufacturing facility over the next few months. Allergan will continue to sell Estrasorb for the
foreseeable future from available inventory.
The goal to exit manufacturing of Estrasorb had been a high priority of the Company’s Board and
management team since this activity was not strategic to the Company’s core vaccine business and
was a cash drain to Novavax. The Company had continued manufacturing Estrasorb since it was tied
to the product’s license agreement. Additionally, Allergan will return to Novavax the rights to
develop ESP 210, an investigational drug in Phase II development for the treatment of hypoactive
sexual desire disorder.
“We are focused on executing our vaccine business strategy and have previously stated that one of
our highest corporate priorities is to divest the Company’s various non-vaccine product candidates
and technologies. Today’s announcement terminating the Estrasorb supply agreement is in line with
this corporate priority and will reallocate our cash to our core business, the development of new
vaccines,” said Dr. Rahul Singhvi, Novavax’s President and CEO.
About Novavax
Novavax Inc. is committed to leading the global fight against infectious disease by creating novel,
highly potent vaccines that are safer and more effective than current preventive options. Using the
company’s proprietary virus-like particle (VLP) and Novasome® adjuvant technologies, Novavax is
developing vaccines to protect against H5N1 pandemic influenza, seasonal flu and other viral
diseases. Novavax’s particulate vaccines closely match disease-causing viruses while lacking the
genetic material to cause disease, which provides potential for greater immune protection at lower
doses than current vaccines. With an exclusive portable manufacturing system that allows for rapid
mass-production of vaccines, Novavax is uniquely positioned to meet global public health needs.
Additional information about Novavax is available at www.novavax.com and in the company’s various filings with the Securities and Exchange
Commission.
Forward-Looking Statements
Statements herein relating to future financial or business performance, conditions or strategies
and other financial and business matters, including expectations regarding product sales, operating
expenses, and clinical developments are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act. Novavax cautions that these forward-looking statements
are subject to numerous assumptions, risks and uncertainties, which change over time. Factors that
may cause actual results to differ materially from the results discussed in the forward-looking
statements or historical experience include risks and uncertainties, including the failure by
Novavax to secure and maintain relationships with collaborators; risks relating to the early stage
of Novavax’s product candidates under development; uncertainties relating to clinical trials; risks
relating to the commercialization, if any, of Novavax’s proposed product candidates; dependence on
the efforts of third parties; dependence on intellectual property; competition for clinical
resources and patient enrollment from drug candidates in development by other companies with
greater resources and visibility, and risks that we may lack the financial resources and access to
capital to fund our operations. Further information on the factors and risks that could affect
Novavax’s business, financial conditions and results of operations, is contained in Novavax’s
filings with the U.S. Securities and Exchange Commission, which are available at www.sec.gov. These
forward-looking statements speak only as of the date of this press release, and Novavax assumes no
duty to update forward-looking statements.
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