The price of Novavax (NVAX) have surged over 29% after Canada government have reached an agreement with the pharmaceutical company to pay almost $350 million for canceling delivery of some of the COVID-19 vaccines that was previously ordered.According to the terms of the purchasing agreement, the government of Canada will forfeit some Novavax (NVAX) vaccine …
The price of Novavax (NVAX) have surged over 29% after Canada government have reached an agreement with the pharmaceutical company to pay almost $350 million for canceling delivery of some of the COVID-19 vaccines that was previously ordered.
According to the terms of the purchasing agreement, the government of Canada will forfeit some Novavax (NVAX) vaccine doses due from the company while delaying others. In return, the company will receive $349.6M in two equal installments before the year-end, according to statement from Novavax. Novavax further stated that despite the revision, the parties agreed to maintain the original agreement’s overall contract value.
In May, Novavax have reported its first-quarter earnings with a more positive and an extensive cost-cutting plan. The business stated that it anticipates revenue of between $1.4 billion and $1.6 billion in 2023. However, a number of obstacles still remain for Novavax, including a $700 million dispute over a canceled vaccine purchase agreement and competition with Pfizer and Moderna in the commercial Covid vaccine market.
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