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Novavax to terminate drug manufacturing agreement with Allergan


NEW YORK (Thomson Financial) - Novavax Inc. Thursday said it had agreed to terminate the manufacturing agreement it has with Allergan Inc. for Estrasorb in order to focus on its vaccine business and reduce cash burn.

Under the terms of the agreement, Novavax (nasdaq: NVAX - news - people ) will manufacture the remaining orders of Estrasorb, while Allergan (nyse: AGN - news - people ) will sell the remaining inventory of menopause symptom drug. Novavax plans to close its Philadelphia manufacturing facility over the next few months.

Allergan will also return the rights to develop ESP 210, a sexual desire disorder drug that is in Phase II development.

Shares of Novavax fell 5 cents to $3.97 on Thursday. Allergan gained 2.4% to $65.95.

More : forbes.com



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