The deal will boost Novavax's capacity to produce its COVID-19 vaccine candidate.

Serum Institute's parent company Cyrus Poonawalla Group sold a Czech unit to US biotechnology company Novavax Inc for $167 million in cash. The acquisition of Praha Vaccine includes a biologics manufacturing facility and associated assets in the Czech Republic. The deal will boost Novavax's capacity to produce its COVID-19 vaccine candidate, NVX-CoV2373.

The Maryland based said it enrolled its first participant in an early stage study testing the vaccine candidate in humans. The Czech facility is expected to provide an annual capacity of more than 1 billion doses of antigen starting in 2021 for NVX-CoV2373.

Stanley C. Erck, President and CEO, Novavax, said: “Manufacturing capacity is a critical component of our strategy to deliver a vaccine for the COVID-19 pandemic.”

As a part of the acquisition, about 150 employees experienced in vaccine manufacturing and support have joined Novavax. The company will work with Serum Institute to increase production at the Bohumil facility by the end of 2020.