Novavax
was rising sharply Thursday after the vaccine maker reached a settlement with nongovernmental organization Gavi for its Covid-19 vaccine. Strong earnings from
Moderna
also were helping to push the stock higher.
Novavax
said in a news release Thursday that it had reached a settlement related to a 2021 advance purchase agreement for its prototype Covid-19 vaccine. Gavi is an international organization that works to improve access to vaccines for children in lower-income countries.
“
Novavax
is pleased to have reached this agreement with Gavi as it gives us the ability to continue to work together toward our shared mission of ensuring equitable access to safe and effective vaccines,” said Novavax Chief Executive John Jacobs.
Novavax had terminated the agreement in November 2022 and said that Gavi didn’t purchase the contracted Covid-19 vaccines before the end of that year. Gavi then sought a $700 million refund from Novavax.
As a part of the deal, Novavax said Thursday it has made an initial payment of $75 million to Gavi and has agreed to make deferred payments of $80 million annually through the end of December 2028 which are due in quarterly installments and total up to $400 million.
Shares of Novavax were surging 25% Thursday to $4.98 and were on pace for their largest percentage increase since July 10, 2023, according to Dow Jones Market Data. Novavax also was getting a lift from
Moderna’s
earnings. Moderna posted fourth-quarter earnings and revenue above Wall Street estimates on Thursday. The stock was climbing 15% to $100.87
In October 2023, the Food and Drug Administration authorized an updated version of the Novavax vaccine for use in people ages 12 and up. It was an important step for the company, which issued a going concern warning a year ago, saying it had ”substantial doubt” about its ability to continue operating.
Novavax has dropped 46% over the last 12 months.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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