Poland strikes deal to produce Novavax COVID-19 vaccine (updated)

Mabion SA

03/03/2021 11:35

(Adds details, quotes)
    WARSAW, March 3 (Reuters) - Polish biotech firm Mabion
 MABP.WA  has signed a preliminary agreement to manufacture
Novavax's  NVAX.O  COVID-19 vaccine with financial support from
a state-run fund, as the government strives to accelerate its
vaccination programme. 
    European Union countries such as Poland have struggled to
secure supplies of COVID-19 vaccines sourced by Brussels,
leading some to step up their own efforts.  urn:newsml:reuters.com:*:nL5N2L02R0    
    Mabion said on Wednesday it had signed a framework agreement
with Novavax for the transfer of the U.S. company's COVID-19
vaccination technology. 
    State-run PFR will provide Mabion with 40 million zlotys 
($11 million) in loans and equity so the company can double its
production capacity in central Poland. 
    "The biggest challenge when it comes to the availability of
vaccinations is the production capacity. This is what all
vaccine producers are struggling with and this is the cause of
delays. This investment is a direct response to these problems,"
PFR Chief Executive Pawel Borys told a conference. 
    Poland reported a jump in new coronavirus cases on
Wednesday. With a population of around 38 million, it has so far
inoculated over three million people, mostly with vaccines from
Pfizer  PFE.N , Moderna  MRNA.O  and AstraZeneca  AZN.L . 
    It has also secured eight million doses of Novavax's vaccine
as part of EU joint purchases. The vaccine is yet to be approved
by EU regulators. 
    "We look forward to a close cooperation with Novavax, which
may pave the way for commercial scale production, provided that
technology transfer and technical batch are successfully
completed", Mabion Chief Executive Dirk Kreder said in a
statement. 
    Mabion said it expected the technology transfer and
verification to be completed by the middle of 2021. 
    At 1046 GMT, Mabion shares were up 56% at 48.7 zlotys,
valuing the company at around 669 million zlotys.
    Borys said PFR would likely provide more financial support
to Mabion if needed and invest in similar companies. 
    "This is one of the most interesting projects and one of the
biggest chances for Poland to realistically start production of
COVID-19 vaccines," Borys said. 
    ($1 = 3.7526 zlotys)

 (Reporting by Agnieszka Barteczko and Anna Koper. Editing by
Louise Heavens and Mark Potter)
 ((agnieszka.barteczko@thomsonreuters.com; +48226539700; Reuters
Messaging: agnieszka.barteczko.reuters.com@thomsonreuters.net))