Novavax announces agreement to license VLP vaccine technology to LGLS

Novavax, Inc. (Nasdaq: NVAX) announced today an agreement to license its proprietary, recombinant virus-like-particle (VLP) vaccine technology to LG Life Sciences, Ltd. (LGLS). Under the agreement, LGLS receives an exclusive license to manufacture, develop and commercialize influenza vaccines using Novavax's recombinant VLP technology in South Korea. LGLS also receives a non-exclusive license to manufacture, develop and commercialize influenza VLP vaccines in certain emerging market countries.

LGLS will be responsible for funding clinical development and licensure of influenza VLP vaccines in South Korea and other countries, and for construction of a new VLP vaccine manufacturing facility planned at LGLS's Osong campus in South Korea.  Novavax will receive upfront and milestone payments from LGLS in addition to double-digit royalty rate payments from commercial sales. Novavax will provide VLP technology transfer and manufacturing support for LGLS's new vaccine production facility.

Dr. Rahul Singhvi, CEO and President of Novavax, stated: "LGLS is an affiliate of LG, a global conglomerate. LGLS is a leading provider of vaccines to supranational health organizations such as UNICEF and the Pan American Health Organization (PAHO). We welcome this opportunity to develop a recombinant influenza vaccine solution for South Korea and other countries served by LGLS.  This new partnership with LGLS is further validation of our VLP technology and, as we have done previously with our joint venture in India with Cadila Pharmaceuticals, further expands our development efforts into new territories. LGLS will help us advance our technology in Korea and other countries, consistent with our commercial strategy of developing regional partnerships and in-country manufacturing solutions with leading pharmaceutical companies around the world."

Dr. Iljae Jung, CEO and President of LGLS, commented: "We look forward to working closely with Novavax in advancing the VLP influenza vaccines for people around the world.  We anticipate that Novavax and LGLS together will make significant achievements in the field of influenza vaccines with our technology, expertise and combined resources."