Novavax licenses flu vaccine technology to LG Life

Associated Press//March 1, 2011//

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ROCKVILLE — Novavax. Inc. said Tuesday it gave pharmaceutical company LG Life Sciences Ltd. an exclusive license to develop and sell flu vaccines using its technology in South Korea.

LG, based in South Korea, also receives a non-exclusive license to make and sell flu vaccines in certain emerging markets, Novavax said.

Terms of the deal weren’t announced.

LG will be responsible for funding development of the vaccines in South Korea and other countries, while Novavax will receive upfront and milestone payments, along with double-digit royalty rate payments on future commercial sales.

Shares of Novavax surged 96 cents or 36.9 percent, to $3.56 in premarket trading.

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