Novavax Secures $400 Million Settlement with Gavi to Resolve COVID-19 Vaccine Contract Dispute

- Novavax reaches a $400 million settlement with Gavi, the Vaccine Alliance (Gavi), resolving arbitration stemming from a 2021 advance purchase agreement (APA) for their prototype COVID-19 vaccine, NVX-CoV2373.
- The settlement includes an initial payment of $75 million to Gavi, followed by deferred payments totaling $400 million by December 31, 2028.
- Offset or reduction options are available for Novavax via an $80 million annual vaccine credit and an additional $225 million credit for potential future demand.
- The dispute arose due to Gavi seeking a refund after canceling a substantial portion of its order under the 2021 APA, citing diminished demand for Novavax's vaccine.
- If the settlement had not been reached, Novavax could have faced a near-$700 million repayment to Gavi for the prepaid amounts.
- Both parties aim to continue collaborating and serving their respective missions without disruption.