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Novavax shares rose on news of the Canadian government’s settlement payment.
It is unclear how many doses of Novavax’s vaccine, the company’s only commercially available product after 35 years, have not been used. Under the revised agreement, Novavax will also deliver fewer doses of the vaccine to Canada on a revised delivery schedule.
Under the agreement, however, Canada can terminate the contract if Novavax fails to obtain regulatory approval to produce the vaccine at the Canadian government’s biomanufacturing facility by Dec. 31, 2024.
The announcement is another sign of hope for investors after the cash-strapped company expressed doubts earlier this year about its ability to continue operating.
In May, Novavax took a more positive outlook and announced a sweeping cost-cutting plan alongside its first-quarter earnings report. The company said it expects revenue in the range of $1.4 billion to $1.6 billion in 2023.
Shares of Novavax jumped around 30% on the news, but Wall Street hasn’t fully embraced the recovery plan: Since the start of the year, the company’s shares are still down about 15% after losing more than 90% of their value in 2019. 2022.
Novavax still faces many challenges, including Pfizer and modern In the commercial COVID-19 vaccine market and Awaiting $700 million in arbitration About the canceled vaccine purchase agreement.
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