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Nikos Picardis | Norphoto | Getty Images
Novavax shares jump on news of a settlement payment from the Canadian government.
It’s unclear how many doses of the Novavax vaccine — its only commercially available product after 35 years — have not been used. Under the revised agreement, Novavax will also supply lower doses of its vaccine to Canada under a revised delivery schedule.
However, Canada could terminate the contract if Novavax fails to obtain regulatory approval to produce the vaccine at the Canadian government’s biomanufacturing facility by December 31, 2024, according to the agreement.
The announcement is another sign of hope for investors after the cash-strapped company cast doubts about its ability to stay in business earlier this year.
In May, Novavax took a more positive outlook and announced a comprehensive cost-cutting plan along with its first-quarter earnings report. The company said it expects 2023 revenues of between $1.4 billion and $1.6 billion.
Novavax’s share price jumped about 30% on that news. The company’s share price is down 4% since the beginning of the year after losing more than 90% of its value in 2022.
Novavax still faces a number of future challenges, including competing with it Pfizer And accident In the commercial Covid vaccine market and a $700 million pending arbitration On a canceled vaccine purchase agreement.
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