Novavax settles dispute with Gavi
Written By : Ruchika Sharma
Medically Reviewed By : Dr. Kamal Kant Kohli
Published On 2024-02-23 06:00 GMT | Update On 2024-03-22 09:56 GMT
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Novavax has agreed to pay back international vaccine group Gavi at least $475 million in cash or vaccines by the end of 2028, settling a dispute over canceled orders that created financial uncertainty for the U.S. maker of COVID-19 shots.
Shares of the company rose 23.2% to $4.91 on Thursday.
Its stock has dropped nearly 60% since the company last year raised doubts about its ability to remain in business. Nearly half of Novavax's free float shares were in short position, as of Jan. 31.
Gavi, an alliance that co-finances vaccine purchases with low-income countries, paid Novavax $700 million over 2021 and 2022 for up to 350 million doses of its COVID vaccine.
Novavax, which launched its vaccine after several competitors due to manufacturing and regulatory delays, did not deliver any doses before the contract's deadline at the end of 2022.
The settlement "really clears the deck of the most significant single uncertainty and liability that we had on our books," Novavax Chief Executive John Jacobs said in an interview.
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