Gaithersburg’s Novavax Inc. has secured new real estate to support its growth, fueled by its Covid-19 and seasonal flu programs.
The local biotech said early Monday it has purchased a 9.7-acre parcel at 14 Firstfield Road in Gaithersburg through its affiliate, 14 Firstfield Holdings LLC. There, Novavax “plans to develop in the future to accommodate growth of the Company.” It did not immediately disclose a purchase price, which is not yet public.
The property last sold for $3.5 million in June 2016, according to public records.
The company has also locked in a 15-year lease for roughly 122,000 square feet nearby at 700 Quince Orchard Road, as the Washington Business Journal reported in August. That site will provide manufacturing, research and development, and additional office capacity. Novavax said it “will immediately invest in the buildout” so it’s ready for prime time in early 2021. That all adds to Novavax's existing 79,000 square feet of lab and office space in the county.
As part of the expansion, Novavax (NASDAQ: NVAX) said it has received a combination of incentives — conditional loans, grants and tax credits included — from the Maryland Department of Commerce, Montgomery County and the city of Gaithersburg.
That includes a $2 million conditional loan approved by the Maryland Department of Commerce and a $500,000 grant by Montgomery County, both contingent on job creation and capital investment, according to the Montgomery County Economic Development Corp. It also involves a $200,000 Partnership for Workforce Quality training grant from the state of Maryland. The city of Gaithersburg is expected to approve a grant of up to $50,000 from its Economic Development Opportunity Fund, as well. Novavax is also eligible for multiple tax credits.
The company has committed to adding at least 400 new jobs by December 2024, and that the majority of new hires would happen by March 2021, the MCEDC said Monday. Novavax has more than 90 positions open currently, on top of 142 in Maryland out of 450 globally.
“The expansion of our physical footprint reflects Novavax’ significant growth as we work to both rapidly deliver a Covid-19 vaccine and progress NanoFlu, our influenza vaccine candidate, for regulatory submission and potential commercialization,” said Novavax President and CEO Stanley Erck in a statement. “We appreciate the support, partnership and speed of the Maryland Department of Commerce, Montgomery County, and the city of Gaithersburg, which have enabled the expansion of our operations, enhanced our ability to retain and attract highly skilled employees, and reinforced our longstanding commitment to the biotechnology sector in Maryland.”
The growth comes as Novavax’s pivotal late-stage trials for its coronavirus vaccine candidate, NVX-CoV2373, advances in the United Kingdom, and set to start by the end of November in the U.S. and Mexico after some delay. That program is funded with a total $2 billion, including $1.6 billion from the federal government’s Operation Warp Speed and up to $338 million from the Coalition for Epidemic Preparedness Innovations, or CEPI.
The company has also resumed work on its seasonal flu vaccine program, after putting that work on hold earlier this year to focus on its Covid-19 vaccine clinical trials. In doing so, the biotech has promoted Russell “Rip” Wilson, its senior vice president of business development since 2011, to executive vice president and NanoFlu general manager — a new position created to focus on advancing its NanoFlu seasonal flu vaccine candidate. He’s heading up a separate development unit within the company focused on the flu program, which had come out of late-stage trials in March with positive data. He’ll also lead the charge in exploring a potential combined flu and Covid-19 vaccine “that could be used in a postpandemic setting,” Novavax said in mid-October.
Novavax’s stock closed down 7.9% Friday at $80.71 per share, but has seen shares trade about 3.7% higher Monday morning to $83.74 each.
