On Wednesday, Novavax announced that it is downsizing its Maryland operations by transferring the lease of part of its main campus at 700 Quince Orchard Road in Gaithersburg to AstraZeneca and selling nearby property to reduce costs and focus on vaccine research.
The company said the move will generate $60 million and is expected to save about $230 million over the next decade through lower rent and operating expenses.
Per Novavax: Novavax, Inc. (Nasdaq: NVAX) today announced that it has further executed against its planned transformation into a lean, agile operating model by signing definitive agreements related to one of its Maryland-based locations (700 Quince Orchard Road, Gaithersburg, Md.) and surrounding property. The site consolidation efforts are part of Novavax’s corporate growth strategy, announced last year, that allow the Company to focus on research and development (R&D) efforts and partnerships by retaining the necessary capabilities in the leanest and most cost-effective manner. In support of this strategy, the agreements will result in $60 million in payments to Novavax and is expected to result in future cost savings of $230 million over 11 years related to both lease expense and facility operating costs.
“This planned site consolidation aligns with our commitment to transform Novavax into a more lean and agile organization and is yet another proof point that we continue to deliver against our corporate growth strategy,” said John C. Jacobs, President and Chief Executive Officer, Novavax. “This consolidation of our facilities in Maryland results in upfront cash and significant cash savings related to our lease liabilities and future operating costs while enabling Novavax to better focus on pipeline and technology investments.”
Assignment of the lease for this facility and sale of certain related assets are both expected to close in January of 2026 and result in $40 million in payments to Novavax. Sale of property adjacent to the headquarters building is expected to close in the fourth quarter of 2025 and result in a $20 million payment to Novavax.
