Novavax Terminates Agreement With GAVI Alliance For Sale Of Its COVID-19 Vaccines

  • Novavax Inc (NASDAQ: NVAX) delivered a written notice to Gavi, the Vaccine Alliance, terminating with immediate effect an agreement for the sale of its COVID-19 vaccine to low- and middle-income countries.

  • The company cited Gavi’s failure to procure the 350 million doses it had agreed to buy in May last year for the COVAX facility.

  • The termination has not resulted in any penalties, the company said in its regulatory filing.

  • Related: Canada Approves Novavax’s COVID-19 Vaccine As Booster In Adults.

  • Novavax received a non-refundable advance payment of $350 million from Gavi last year and an additional $350 million this year after the vaccine got the WHO’s emergency use listing, the company said.

  • As of November 18, the company had only received orders under the agreement for approximately 2 million doses.

  • The announcement comes on the back of poor demand for the company’s shot amid a global supply glut for COVID-19 vaccines and waning demand.

  • Earlier this month, the company revised its FY22 sales forecast for the second time amid waning demand for COVID-19 vaccines.

  • The company now expects annual revenue to be approximately $2.0 billion, the low end of its prior forecast range of $2 billion – $2.3 billion.

  • Price Action: NVAX shares are up 0.63% at $19.07 premarket on the last check Tuesday.

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