Shah Capital End Proxy Fight with Novavax

Shah Capital, a top shareholder of Novavax (NASDAQ:NVAX), has withdrawn its proxy campaign against the company days after the COVID-19 vaccine maker struck a licensing agreement with French pharma giant Sanofi (SNY).

Shah Capital, the biotech’s third-largest shareholder with about 7.5% ownership stake, launched its boardroom battle in April and stepped up its efforts early this month, calling for the removal of three NVAX directors at the 2024 annual shareholder meeting next month.

However, days later, Novavax (NVAX) outlicensed its COVID-19 vaccine to Sanofi (SNY) in a deal worth up to $1.2B.

“We long advocated for Novavax to explore potential strategic partnership opportunities and believe that the company’s recent announcement of its entry into a co-exclusive licensing agreement with Sanofi is a long-awaited step in the right direction,” Raleigh, NC-based Shah Capital said.

“We will continue to closely monitor the company, including its operations, especially marketing, as we believe significant additional value remains to be unlocked at Novavax,” the hedge fund added.