Novavax Consolidates Operations, Transfers Maryland HQ to AstraZeneca in $60M Deal

Novavax, the Gaithersburg-based vaccine maker, has struck a deal to transfer the lease of its Maryland corporate headquarters to AstraZeneca for nearly $60 million. This move is part of Novavax's ongoing efforts to streamline operations and focus on research and development partnerships.

Facility Transfer and Financial Implications

The agreement, set to take effect on January 5, 2026, involves AstraZeneca taking over Novavax's multi-year lease, which expires in December 2036. The $59.8 million deal includes both the lease reassignment and the sale of certain related assets.

Novavax anticipates recording a non-cash impairment charge between $96 million and $98 million during the third quarter of 2025. However, the company projects cost savings of $230 million over the 11-year period related to lease and operating expenses.

John C. Jacobs, CEO of Novavax, explained the strategic rationale: "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."

Broader Industry Impact and Company Strategies

The deal marks a significant expansion for AstraZeneca in Gaithersburg, adding approximately 171,000 square feet to its existing footprint. The British pharmaceutical giant already operates a substantial R&D campus in the city, housing over 3,000 employees. This acquisition follows AstraZeneca's recent $300 million investment in a cell therapy site in Frederick, Maryland, further solidifying its presence in the state.

For Novavax, this transaction is the latest in a series of consolidation efforts. In 2024, the company sold a 150,000-square-foot recombinant protein facility in Bohumil, Czech Republic, to Novo Nordisk for $200 million, which included the transfer of the plant's workforce.

Novavax's Financial Landscape and Partnerships

Novavax's primary revenue source remains its non-mRNA COVID-19 vaccine, Nuvaxovid, and related partnerships with Sanofi and Takeda. The collaboration with Sanofi, initiated in 2024, involved a $1.2 billion deal and Sanofi taking a 4.9% equity position in Novavax.

The U.S. approval of Nuvaxovid in May 2025 triggered a $175 million payment from Sanofi, with an additional $25 million recorded in October following the transfer of the vaccine's European marketing authorization. Takeda has partnered with Novavax to market the drug in Japan.

Despite these partnerships, Novavax has faced challenges in maintaining sales momentum. After generating $984 million in 2023, the company's revenue declined to $682 million in 2024. The most recent financial report shows second-quarter 2025 sales of $239 million, representing a 42% decrease compared to the same period in the previous year.