Novavax, Inc., a late-stage biotechnology company initiated the development of a vaccine against the virus that causes COVID-19, announced that it has moved into an agreement with an investment fund affiliated with RA Capital Management for the sale of Series A Convertible preferred stock in a private placement. Series A Convertible preferred stock will be convertible into common stock of 4,388,852 shares. The effective purchase price per share of common stock will be equal to the closing price of June 12, 2020. Novavax will get the gross proceeds of approximately $200 million on closing of this sale.
Novavax’s President and Chief Executive Officer Stanley C. Erck said the incoming capital will strengthen the cash position and the funding from the U.S. Department of Defense and CEPI is helping to make the company the capable to perform the critical priority of offering a vaccine to cope with the issue of coronavirus spread and proceed in the NanoFlu to BLA filing. He added on RA Capital management contribution, “We are extremely pleased to receive this tremendous support from RA Capital, which we believe signals a high level of confidence in the significant progress of our COVID-19 and influenza vaccine programs.”
While RA Capital Management’s Ph.D. holder Managing Partner Peter Kolchinsky said, “We are excited to increase our investment in Novavax, which along with resources from CEPI and the U.S. Department of Defense, will support Novavax in its important work developing an effective, scalable vaccine for SARS-CoV-2.” He further stated that cause of global vaccine is related to looking forward for the candidates that could do both; developing the highest neutralizing antibody titers and accomplish a large-scale production.
Novavax, Inc. (NVAX) is a late-stage biotechnology company involved in making vaccines for serious infectious diseases. It promotes betterment of health sector globally through the discovery, development, and commercialization of innovative vaccines to prevent serious infectious diseases. Novavax Phase 1 clinical trial results of NVX-CoV2373 vaccine development against SARS-CoV-2 are expected in July this year.
While RA Capital Management is a multi-stage investment managing company involved in evidence-based investing in the companies and startups working in field of public and private healthcare and life science to develop drugs, medical devices, and diagnostics.