Novavax Settles Arbitration with Gavi, Avoiding $700 Million Hit
The settlement over canceled Covid vaccine purchases allows Novavax to pay up to $475 million, potentially less with future orders, providing financial relief.
- Novavax has reached a settlement with Gavi, the global vaccine organization, over a canceled Covid vaccine purchase agreement, potentially paying up to $475 million.
- The settlement includes an initial payment of $75 million to Gavi, with deferred payments of $80 million annually through 2028, which can be offset by vaccine orders from Gavi.
- Novavax's financial obligations may be reduced if Gavi decides to order more vaccines, offering a credit of up to $225 million for additional demand over the next five years.
- The agreement resolves a significant financial uncertainty for Novavax, which has faced plummeting demand for Covid products and a significant drop in its stock value.
- Both Novavax and Gavi have new leadership since the original agreement, focusing on future opportunities, including Novavax's upcoming combination COVID-flu vaccine and a malaria vaccine.
CNBC 
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