Novavax ends COVID vaccine sale settlement with Gavi

Nov 21 (Reuters) – Novavax Inc (NVAX.O) stated on Monday it had delivered a written understand to Gavi, the Vaccine Alliance, terminating with instant impact an settlement for the sale of the corporate’s COVID-19 vaccine to low- and middle-income international locations.

The corporate cited Gavi’s failure to obtain the 350 million doses it had agreed to shop for in Might ultimate yr for the COVAX facility.

The COVAX facility is a joint program between Gavi, the International Well being Group (WHO) and the Coalition for Epidemic Preparedness Inventions for the equitable distribution of COVID vaccines in poorer international locations.

The termination has no longer led to any consequences, the corporate stated.

Novavax won a non-refundable advance cost of $350 million from Gavi ultimate yr and an extra $350 million this yr after the vaccine were given the WHO’s emergency use checklist, the corporate stated.

Novavax additionally has a pact with Serum Institute of India for production a model of the vaccine underneath the logo Covovax, which might even be provided to the COVAX facility.

Serum Institute was once anticipated to fabricate and promote round 750 million doses of Covovax to the ability.

Novavax and Serum Institute weren’t in an instant to be had to reply on whether or not that deal was once additionally terminated.

The announcement comes at the again of deficient call for for the corporate’s shot amid an international provide glut for COVID-19 vaccines and waning call for.

The corporate had previous this month minimize its full-year forecast over again, harm through overdue authorizations of its vaccine globally. Covovax and Serum’s vaccines have been the 9th and 10th vaccine, respectively, to get the WHO’s emergency checklist.

Gavi was once no longer in an instant to be had to answer a request for remark.

Reporting through Leroy Leo in Bengaluru; Modifying through Sriraj Kalluvila

Our Requirements: The Thomson Reuters Consider Ideas.

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