COVID vaccination deal violated
2022.11.22 13:36
COVID vaccination deal violated
Budrigannews.com – Worldwide immunization coalition Gavi on Tuesday dismissed Novavax (NASDAQ:)’s assertion that the group had broken an advance purchase agreement to acquire 350 million doses of the COVID-19 vaccine manufactured by the company.
As a result of the alliance’s failure to acquire the doses it had agreed to purchase in May of last year for the COVAX facility, a global vaccine distribution program, Novavax announced on Monday that it had sent a notice to Gavi terminating the agreement immediately.
In afternoon trading, the company’s shares were down nearly 9%.
A Gavi spokesperson told Reuters, “It is clear that Novavax will not be able to meet its commitment to manufacture” the COVAX doses by the end of 2022.
Gavi stated that despite signing the agreement more than 18 months ago, Novavax has not yet been able to provide COVAX with a single dose from the contractually specified sites.
In addition, Gavi stated that it reserved all rights, including the right to recover advance payments made to the business.
After the vaccine was added to the emergency use list by the World Health Organization, Novavax received a non-refundable advance payment of $350 million from Gavi the previous year and an additional $350 million this year.
The company reiterated its readiness to fulfill its commitment to manufacture and deliver doses for the COVAX facility in response to Gavi’s statement.
Additionally, Novavax has a deal with Serum Institute of India to produce a vaccine under the brand name Covovax, which will also be delivered to the COVAX facility.
According to the spokesperson for Gavi, Serum Institute had committed to producing 300 million doses of Covovax, with the option to produce an additional 750 million doses if necessary.
Serum Institute’s spokesperson declined to comment.
Due to delayed global approvals of its COVID vaccine and decreasing demand for shots, Novavax recently reduced its full-year forecast yet again.
