SK bioscience strengthens partnership with Novavax

South Korean vaccine developer SK bioscience’s (KRX: 302440) shares were up 4.6% at 84,500 won, after it announced its decision to make an equity investment of around $85 million in US biotech Novavax (Nasdaq: NVAX), which is advancing protein-based vaccines with its novel Matrix-M adjuvant, securing 6.5 million shares of common stock (a 7% stake) through a private placement. Novavax shares edged up 3.3% to $7.47 pre-market.

SK bioscience's strategic equity investment comes at a time when the two companies aim to transition from a CMO/CDMO partnership formed during the pandemic to a long-term synergistic relationship in the endemic era.

Additionally, SK bioscience and Novavax have extended their current license agreement, adding Novavax’s updated COVID-19 vaccine, which is currently under development for annual vaccination.