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Novavax partners with Paragon, sells equipment for $18M

A Maryland biotechnology firm has sold some equipment and other assets to the Baltimore-based gene therapy unit of a New Jersey firm for roughly $18 million and both firms are planning to work together in the future.

Gaithersburg-based Novavax Inc. announced it sold manufacturing equipment and other assets to Catalent Inc.’s Paragon Gene Therapy Unit, which is based in the University of Maryland BioPark.

Novavax also began a services arrangement with Paragon, under which Paragon will provide process and analytical development, Novavax said in a news release. Paragon also has the opportunity to manufacture materials for Novavax’s clinical trial supplies for influenza and respiratory syncytial virus under the agreement.

Novavax said the deal shrinks its operating costs while preserving its proprietary manufacturing capabilities at Paragon, and gives Paragon resources to grow its gene therapy development and contract manufacturing businesses.

Novavax expects the cost savings from personnel and lease transfers, plus the cash it received from the sale, will let it hold a phase 3 clinical trial for its flu vaccine that is scheduled to begin in the third quarter.

 


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