GAITHERSBURG, MD – Novavax Inc. (NASDAQ:NVAX), a biotechnology company specializing in the development of vaccines with a market capitalization of $1.39 billion, has modified its supply agreement with the Commonwealth of Australia.
The amendment to the previous deal, which was initially established on December 31, 2020, was made on Wednesday, December 12, 2024, as disclosed in a recent SEC filing.
According to InvestingPro analysis, Novavax currently maintains a GOOD overall financial health score, despite analysts anticipating sales decline in the current year.
Under the revised terms, Novavax acknowledges the cancellation of certain COVID-19 vaccine doses originally scheduled for delivery between the fourth quarter of 2023 and the fourth quarter of 2025. In lieu of these cancellations, the Commonwealth has agreed to credit approximately $31 million against outstanding and future invoices related to the delivery of approximately 3 million doses of the COVID-19 vaccine. This adjustment will not require additional cash payments from Australia.
The updated agreement also outlines an extended delivery schedule, which now includes the potential provision of COVID-19 vaccines or future variant vaccines through the end of 2029.
The amendment introduces specific remedies for the Commonwealth, such as the return of unused credit, cancellation of doses, or termination of the agreement, should Novavax fail to meet delivery commitments, underdeliver, or not obtain regulatory approval for a variant COVID-19 vaccine.
Moreover, Australia retains the right to cancel doses if Novavax does not promptly inform the Commonwealth of any changes to its commercialization plans.
The details of the amendment will be made available in Novavax's Annual Report on Form 10-K for the year ending December 31, 2024. This adjustment in the vaccine supply framework reflects ongoing efforts to adapt to the evolving needs and circumstances surrounding the global management of COVID-19.
This report is based on information contained in a recent SEC filing by Novavax.
In other recent news, Novavax has achieved a significant $50M milestone in its partnership with Sanofi (EPA:SASY) (NASDAQ:SNY), marking a meaningful step in its growth strategy. This payment is connected to the progression of Novavax's COVID-19 vaccine for children, which is currently in Phase 2/3 clinical trials.
Novavax could receive up to $300M in additional milestone payments due to its partnered COVID-19 vaccine, and another $350M in future milestones for combination products developed by Sanofi that incorporate Novavax's COVID-19 vaccine.
Furthermore, Novavax has initiated a Phase 3 trial for its COVID-19-Influenza Combination (CIC) vaccine and a stand-alone seasonal influenza vaccine, following positive Phase 2 data. The company has also sold its Czech facility to Danish pharmaceutical company Novo Nordisk (NYSE:NVO) for $200M, a strategic move to streamline operations and focus on vaccine development.
Analysts from B.Riley and H.C. Wainwright have updated their outlook on Novavax, with B.Riley reducing its price target but maintaining a Buy rating, and H.C. Wainwright maintaining a Buy rating and a $19.00 stock price target. In its third-quarter earnings report, Novavax revealed a decrease in revenues to $85M, down from $187M in the same quarter of the previous year. These are recent developments in Novavax's ongoing efforts to remain competitive in the vaccine market.
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