According to the financial news app, Novavax (NVAX.US) sells its production facility in the Czech Republic to Novo Nordisk (NVO.US) for $0.2 billion.

Novavax has been working to address the decline in sales of its only marketed product, the new coronavirus vaccine, and issued a warning last year about its ongoing operation capabilities.

In May of this year, after reaching a licensing agreement with the French pharmaceutical giant Sanofi (SNY.US), Novavax lifted the previously issued "going concern" warning.

According to the statement released on Wednesday, Novavax will transfer a 0.15 million square foot recombinant protein manufacturing facility and associated buildings, existing workforce, and all relevant and necessary infrastructure to Novo Nordisk.

In addition to a cash payment of $0.19 billion in 2024 and an extra $10 million in 2025, Novavax expects that the sale of the facility will reduce annual operating costs by approximately $80 million.

Novavax's President and CEO, John C. Jacobs, stated: "The decision to sell the Czech manufacturing plant is in line with our previously announced commitment to develop Novavax into a leaner, more agile organization, focusing on our pipeline assets and technology platform."

The agreement is expected to be completed on December 30, 2024, at which time all responsibilities for the production facility will be transferred to Novo-Nordisk a/s.

As of the time of publication, novavax pharmaceuticals rose 3.69% in pre-market trading, while novo-nordisk a/s fell 0.64%.