(Reuters) – COVID-19 vaccine maker Novavax (NASDAQ:) stated on Wednesday it should promote its manufacturing facility in Czech Republic to Wegovy-maker Novo Nordisk (NYSE:) for $200 million and use the proceeds for its vaccine pipeline.

The corporate has struggled to maintain tempo with rival vaccine makers Moderna (NASDAQ:) and Pfizer (NYSE:), which reported greater than $3 billion in mixed gross sales for his or her mRNA COVID-19 pictures within the third quarter. It had additionally raised doubts about its potential to remain in enterprise in 2023.

The divestiture of the Czech facility follows U.S.-based Novavax’s licensing deal value at the very least $1.2 billion with French drugmaker Sanofi (NASDAQ:) for its COVID-19 vaccine, in alternate for the latter taking an almost 5% stake within the agency.

Novavax shares have risen about 88% for the reason that Sanofi deal in Could.

“The choice to promote the Czech Republic manufacturing facility aligns with our beforehand introduced dedication to evolve Novavax right into a extra lean and agile group centered on partnering our pipeline property and know-how platform,” CEO John Jacobs stated in a press release.

The corporate expects the sale of the unit to end in annual working price reductions of about $80 million.

Novo Nordisk didn’t instantly reply to a Reuters request for remark.