Nikos Pekiaridis | Nurphoto | Getty Images
Novavax shares soar on information of a settlement fee from the Canadian authorities.
It’s unclear what number of doses of Novavax’s jab – its solely commercially accessible product after 35 years – went unused. Under the amended settlement, Novavax can even present Canada with fewer doses of its vaccine on a revised supply schedule.
However, Canada can terminate the contract if Novavax fails to obtain regulatory approval for vaccine manufacturing on the Canadian authorities’s biomanufacturing facility by Dec. 31, 2024, in response to the settlement.
The announcement is one other signal of hope for traders after the cash-strapped company raised doubts about its capability to remain in enterprise earlier this 12 months.
In May, Novavax adopted a extra constructive outlook and introduced a sweeping cost-cutting plan alongside its first-quarter earnings report. The company stated it expects 2023 income of between $1.4 billion and $1.6 billion.
Novavax’s stock value jumped round 30% on that information. The company’s stock value is down 4% because the begin of the 12 months after after shedding greater than 90% of its worth in 2022.
Novavax nonetheless faces a variety of challenges forward, together with competing with Pfizer and Moderna within the business Covid vaccine market and a pending $700 million arbitration over a canceled vaccine buy settlement.
