Novavax is slimming down again by striking a deal to transfer the lease to its Maryland corporate headquarters to AstraZeneca in exchange for nearly $60 million.
The Gaithersburg, Maryland-based vaccine maker plans to let go of the facility in an effort to better focus on R&D and partnerships as part of its corporate strategy, the company said in an Oct. 22 press release. In essence, the company aims to maintain "necessary capabilities" in only the “leanest and most cost-effective manner."
Novavax will remain headquartered in Gaithersburg, moving to a new address that’s just down the road, an Oct. 17 SEC filing shows.
According to the filing, AstraZeneca will officially take over Novavax’s multi-year lease on Jan. 5, 2026, for $59.8 million. The lease expires in December of 2036.
The deal includes the lease reassignment and the sale of certain related assets, according to the filing.
Novavax expects to record a non-cash impairment charge of between $96 million and $98 million during this year’s third quarter, but it estimates cost savings of $230 million over the 11-year period related to the lease and operating costs.
"This consolidation of our facilities in Maryland results in upfront cash and significant cash savings related to our lease liabilities and future operating costs while enabling Novavax to better focus on pipeline and technology investments,” CEO John C. Jacobs explained in the release.
With the deal, AZ is slated to add about 171,000 square feet of space in Gaithersburg. The British drugmaker already has a significant footprint in the city, operating a R&D campus that houses more than 3,000 staffers. In addition, AZ recently expanded its force in Maryland with the addition of a $300 million cell therapy site in Frederick.
As for Novavax, the deal is the latest in its consolidation efforts. Last year saw a $200 million sale of a 150,000-square-foot recombinant protein facility in Bohumil, Czech Republic, to Novo Nordisk, a deal that included support buildings and a transfer of the plant's workforce.
Besides its consolidation efforts, Novavax's product-related revenue stems from its non-mRNA COVID-19 vaccine Nuvaxovid and related partnerships with Sanofi and Takeda.
Sanofi stepped in to help with Novavax’s COVID vaccine efforts last year, taking a 4.9% equity position in the vaccine maker and striking a $1.2 billion collaboration.
The vaccine’s U.S. approval in May triggered a $175 million payment from Sanofi, with another payout of $25 million recorded earlier this month after Novavax transferred over Nuvaxovid’s European marketing authorization. Takeda, meanwhile, has signed on to market the drug in Japan.
Novavax’s partnerships are key to keeping the company afloat as sales continue to struggle. After generating $984 million in 2023, the drugmaker logged $682 million in full-year 2024 sales and most recently reported $239 million during the second quarter of 2025, a 42% dip from the same period last year.