Novavax rises after signing licensing agreement with Pfizer for vaccine development

Shares of vaccine maker Novavax NVAX.O rise 4.5% to $8.37 premarket

NVAX says it is entering into a licensing agreement with Pfizer PFE.N to develop vaccines for infectious diseases

PFE will gain access to NVAX's Matrix-M adjuvant technology allowing the drugmaker to research, develop, and commercialize vaccines that contain the adjuvant

An adjuvant is an ingredient used in some vaccines that helps create a stronger immune response

NVAX will receive an upfront payment of $30 million in Q1. It is eligible to receive up to an additional $500 million in milestone payments

Up to last close, stock had fallen 6.1% in the last 12 months