May 10 Reuters Novavax on Friday struck a licensing deal of up to 1.2 billion with Sanofi for COVID19 vaccines in exchange for a stake that valued the U.S. biotech firm at double its current market capitalization. 

Shares of the company more than doubled before the bell to 10.11 following the deal as Novavax removed a warning notice from February last year that raised doubts about it being in business.

Sanofi will take a 4.9 stake in the U.S. drugmaker for 70 million. That values Novavax at about 1.4 billion, nearly double its market capitalization of about 628 million as of Thursday, but a far cry from its peak of 20 billion in 2021.

The deal also entitles Novavax to an upfront cash payment of 500 million and future payments contingent on certain milestones, as well as royalties.

The cash infusion is expected to strengthen the balance sheet of the vaccine maker, whose shares have lost more than 98 of their value since the early days of pandemic as the company struggled to get its vaccine to the market in a timely manner.

Sanofi, on the other hand, will gain a license to cosell Novavax39;s vaccine in most countries and use the COVID shot along with its own flu vaccines as a combination shot.

For the French drugmaker, the agreement could help bolster its flu vaccine franchise as companies such as Pfizer and Moderna develop rivals, including combination vaccines to be used along with COVID19 shots.

Our sense is the angle here really is on having the option to…