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Sanofi licensing deal doubles value of vaccine group Novavax

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Sanofi licensing deal doubles value of vaccine group Novavax

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Shares in Novavax doubled after Sanofi struck a licensing deal worth up to $1.2bn to commercialise the struggling Covid-19 vaccine maker’s coronavirus jab and use the technology to develop its own combined shot with flu.

Novavax shares were up about 100 per cent in Friday afternoon trading in New York at $8.86, moderating from a gain of as much as 146 per cent earlier in the session, following the announcement. The agreement also prompted the US biotech to remove a “going concern” notice that was issued a year ago and had put pressure on the stock.

The partnership strengthens Sanofi, one of the world’s largest vaccine makers by sales, in the post-pandemic Covid jab market, where pharmaceutical groups are increasingly focused on combined shots against two or more infectious diseases.

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Under the agreement, Paris-based Sanofi would lead the sales push of Novavax’s Covid jab from next year in most countries and have the rights to combine the US biotech’s protein-based vaccine technology with its flu shots and other infectious disease jabs, the companies said on Friday.

Novavax will receive an upfront payment of $500mn in cash and an equity investment, and will stand to receive the remaining $700mn upon the completion of certain regulatory and development milestones.

Sanofi will take a roughly 5 per cent stake in Novavax. Novavax will also benefit from a double-digit percentage of royalties from the sales of its Covid jab as well as any combined shot using its technology, but Sanofi will take the majority of revenues.

“We’re excited by the prospect of combining Novavax’s adjuvanted Covid-19 vaccine that has shown high efficacy and favourable tolerability, with our rich portfolio of differentiated flu vaccines that have demonstrated superior protection against flu and its serious complications,” said Jean-François Toussaint, who heads Sanofi’s vaccine research and development.

Touissant said the combined shot would offer patients “enhanced convenience and protection against two serious respiratory viruses”. Sanofi had a Covid booster vaccine approved by the European Medicines Agency in 2022 but it has struggled to make a dent in the market.

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The licensing agreement caps a tumultuous period for Novavax, whose market value boomed to more than $40bn at the height of the pandemic, propelled by investor excitement over its Covid shot. But it has since had most of its value wiped out.

The vaccine maker has undertaken a $1.1bn cost-cutting drive in the past year to stave off a possible bankruptcy and has faced pressure from an activist investor for a board shake-up.

Novavax suffered from a series of mis-steps with the launch of its Covid vaccine, which was late to market because of a sluggish approval process. It then faced collapsing demand as governments withdrew from procurement deals.

Its vaccine, a more traditional protein-based formulation combined with an adjuvant to boost its effectiveness, has been pitched to patients as a counterpoint to mRNA jabs from BioNTech/Pfizer and Moderna that have inspired vaccine scepticism over rare side effects. But sales have lagged.

“Novavax is now in a stronger position to refocus our efforts on leveraging our technology platform and novel adjuvant,” said John Jacobs, Novavax chief executive.

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Novavax will still be allowed to press ahead with the development of its combined Covid-flu shot, which is set to enter late-stage trials in the second half of this year.

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

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The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

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Map: Earthquake Shakes Central California

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Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

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US says Kuwait accidentally shot down 3 American jets

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US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

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Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

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