Health Care
Novavax cancels Covid-19 vaccine contract with global nonprofit Gavi
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A global nonprofit has accused Novavax of failing to live up to an agreement to produce 350 million doses of its Covid-19 vaccine.
Nov 22, 2022
Novavax Inc. (NASDAQ: NVAX) has ended a contract with Gavi, the Vaccine Alliance, contending the global nonprofit reneged on its agreement to buy 350 million doses of the Gaithersburg biotech’s Covid-19 vaccine.
But Gavi said Novavax never delivered on its promise to supply those doses per the contract — and that the nonprofit will therefore seek to recover payments it made to Novavax under their agreement.
Stan Erckto dramatically cut
Novavax’s 2022 revenue guidancefrom an earlier range of $4 billion to $5 billion to a range of $2 billion to $2.3 billion.
The company has since revised its guidance
for a second timeand is now projecting revenue of about $2 billion.
Novavax said in a statement Tuesday to the WBJ that the company “has been ready to meet our commitment to manufacture and deliver doses for the COVAX facility” and "is disappointed in this outcome given that vaccination rates in developing countries remain below targets set by public health authorities.”
Novavax also said it hopes to negotiate a new agreement and, in the meantime, continues to deliver its Covid vaccine to customers globally.
Under a separate purchase agreement, the Serum Institute of India would make and supply
1.1 billion doses of Novavax’s Covid vaccine to COVAX. Serum Institute declined to comment for this story.
Very tricky story- !>>
When I first read it my view was NVAX was trying to get out of a deal they made with non profit most likely at a horrible rate to be good guys// and now I bet there's some buyers at a better price for those jabs--
Just reading about lawsuit etc.. I don't know. My best advice lay in wait for any outbreak
of Covid that gets alot of TV hype and any hint that the US can muster up funds to buy shots agian. With the change of leadership in the house will we be able to get public health funding for Covid anymore? Maybe not.