Mabion concluded with Novavax an annex to the contract regarding commercial contract production, extending its duration until the end of 2026, and an annex to the Specification of the Contract Terms and Conditions regarding the production of a vaccine antigen for COVID-19 – Mabion said in a release. The company intends to update the design work schedule related to the registration of MabionCD20. Mabion’s rate reacted with double-digit increases.
As stated, as a result of the annex, the company will receive remuneration for the product series produced (“per batch”) or remuneration for the readiness to manufacture a product (“Manufacturing Slot Fee”) based on the production capacity guaranteed to Novavax (“Manufacturing Slot”) .
After the start of the session, the share price soared to over PLN 24 per share. After 9.40 quotes were at 12.8%. a plus with over PLN 3.4 million in turnover.
“Extending the deadline for the implementation of the contract with Novavax is a great success for us and a reason to be pleased. (…) we are systematically expanding the scope of services provided under our contract through subsequent orders for, among others, advanced works in the area of product analytics. extremely important in terms of the credibility that we are systematically building in the CDMO area, which we believe will ultimately translate into contracts with other international clients and allow us to diversify our business “- said Krzysztof Kaczmarczyk, president of Mabion, quoted in the press release.
The price for the series of products produced and the total value of the contract are to remain unchanged from those originally specified in the contract.
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“The amount of + Manufacturing Slot Fee + will be the equivalent of the unit price for the series produced, corrected by the value of materials for the production of a given series of the product. Taking into account prepayments and other exceptions indicated in the schedule, + Manufacturing Slot Fee + will be payable in regular cycles – monthly” – it was written in the release .
“Beginning in January 2023, the agreed unit price for the series and for + Manufacturing Slot + will be subject to one-year indexation until the end of the contract,” added.
The parties agreed a guaranteed quantity of production capacity for Novavax by the second quarter of 2024 and, as stated, Novavax is not entitled to reduce the amount of production capacity reserved until the second quarter of 2024.
“It is assumed that in the period from the beginning of the contract until the end of 2023, the company should complete more than 15% of the total contract value. In the period from the beginning of mid-2024 to the end of 2025, the company should complete about 55% of the total contract value. In 2026, the company should realize about 30% of the total value (the above does not include the indexation of the terms of the contract by the inflation rate) “- it was written.
Since the beginning of cooperation, Mabion has received a total of nearly USD 32 million from Novavax for payments for the antigen series produced so far, for expenditure on retrofitting the plant, for additional orders and prepayments related to the financing of purchased raw materials.
The cooperation between the companies is extended by new orders. As part of the concluded annex, Novavax undertook to undertake activities aimed at immediately ordering the company to use the “Manufacturing Slot” to produce a series of vaccine antigen for COVID-19 variant Omicron agreed by the parties, including technology transfer.-
“The cooperation so far concerned the production of vaccine antigen for the primary virus variant, while its continuation envisages the transfer of technology and then the commencement of production of the vaccine antigen for the COVID-19 Omicron variant. To this end, the partners will take appropriate actions, which will be specified in the next annex to the agreement. The production potential of Mabion allows for the production of antigen for the vaccine for COVID-19 Omicron variant. The planned modernization of the existing plant and the doubling of production capacity will be carried out taking into account the changes resulting from the signed annexes “- it was written in the release.
“The conclusion of the annexes does not deprive the company of the possibility of conducting contractual activities as a CDMO (Contract Development and Manufacturing Organization) for other contractors, with the exception of entities competing with Novavax, as defined in detail in the contract “- stated.
Based on the competences confirmed in cooperation with Novavax, Mabion wants to develop towards the diversification of the client portfolio and further expansion of the CDMO service offer.
“The scope of services that we perform for Novavax as part of subsequent additional orders may constitute a regular offer with which we are already entering the CDMO market. Using the competences and experience we have already acquired, we want to provide services for new clients. We are working on expanding the sales department, whose the main task is to attract international customers to carry out CDMO orders. In drug production processes we see a tendency of + onshoring +, i.e. reversing globalization trends – for several years we have been hearing about crises in the availability of drugs, and the time of the pandemic has additionally verified the efficiency of supply chains negatively. Pharmaceutical companies more and more often decide to become independent from East Asian drug manufacturers, focusing on building competences closer to home markets. This is a very good opportunity for us to use our unique and sought-after competences and gain new customers “- said Kaczmarczyk.
Mabion informed that as a result of the conclusion of the annexes, it is returning to works related to updating the project work schedule aimed at developing MabionCD20 in terms of registration on the European and American market.
The update of the work plan for the coming years is to take into account the current formula of cooperation with Novavax and the expansion of contract activities as CDMO.
As a result, in the opinion of the management board, the schedule of further work on the registration of MabionCD20 will change.
The company intends to announce an updated schedule with an overall development strategy, after all necessary works and arrangements are completed.
Mabion signed a contract with Novavax for the commercial production of a vaccine antigen for Covid-19 in October 2021. It informed that the total value of the contract was estimated at PLN 1.46 billion. (PAP Biznes)
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