Novavax and Gavi Reach Settlement on 2021 COVID-19 Vaccine Advance Purchase Agreement

GAITHERSBURG, Md. and GENEVA, Feb. 22, 2024 ~ Novavax, Inc. (Nasdaq: NVAX) and Gavi, the Vaccine Alliance (Gavi) have announced a settlement regarding their 2021 Advance Purchase Agreement (APA) for Novavax's prototype COVID-19 vaccine (NVX-CoV2373). This agreement brings an end to the pending arbitration related to the APA.

According to John C. Jacobs, President and Chief Executive Officer of Novavax, the company is pleased with this agreement as it allows them to continue working towards their shared mission of ensuring equitable access to safe and effective vaccines. He also expressed excitement for a long-term partnership with Gavi in providing continued access to their protein-based non-mRNA COVID-19 vaccine.

David Marlow, Chief Executive Officer (ad int) of Gavi, also welcomed the agreement, stating that it allows them to maintain focus on their core programmatic goals of providing access to COVID-19 vaccines for vulnerable populations in lower income countries. He believes that this agreement is beneficial for global immunization efforts and will contribute to healthy manufacturing markets.

The terms of the settlement prioritize Gavi's and Novavax's shared mission of saving lives and protecting people's health by increasing equitable and sustainable use of vaccines. As part of the agreement, Novavax has made an initial payment of $75 million to Gavi and has committed to making deferred payments of $80 million annually through December 31, 2028. These payments will be made in quarterly installments and total up to $400 million.

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To offset or reduce its annual cash obligation, Novavax has also agreed to provide an annual vaccine credit of $80 million which can be used for qualifying sales of any of the company's vaccines funded by Gavi for supply to low-income and lower-middle income countries. This credit can be applied towards reducing Novavax's annual cash obligation. Additionally, if there is additional demand, Novavax will provide an additional vaccine credit of up to $225 million, which can be used towards qualifying dose purchases of any of the company's vaccines in these countries over the next five years.

Novavax, Inc. (Nasdaq: NVAX) is a global company based in Gaithersburg, Md., U.S. that focuses on discovering, developing and commercializing innovative vaccines to protect against serious infectious diseases. Their differentiated vaccine platform combines a recombinant protein approach, innovative nanoparticle technology and their patented Matrix-M™ adjuvant to enhance the immune response. In addition to their COVID-19 vaccine, Novavax's pipeline includes a vaccine for COVID-19 and influenza combined. Their adjuvant is also included in the University of Oxford and Serum Institute of India's R21/Matrix-M malaria vaccine.

Gavi, the Vaccine Alliance is a public-private partnership that helps vaccinate more than half the world's children against some of the world's deadliest diseases. The Vaccine Alliance brings together developing country and donor governments, international organizations such as the World Health Organization and UNICEF, as well as private sector partners including the Bill & Melinda Gates Foundation. Since its inception in 2000, Gavi has helped immunize over 1 billion children and prevented more than 17.3 million future deaths in 78 lower-income countries. They also play a crucial role in improving global health security by supporting health systems and funding global stockpiles for vaccines against diseases such as Ebola, cholera, meningococcal disease, and yellow fever.

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After two decades of progress, Gavi is now focused on protecting the next generation by reaching zero-dose children who have not received any vaccines at all. They employ innovative finance and technology such as drones and biometrics to save lives, prevent outbreaks before they spread, and help countries become self-sufficient in their immunization efforts.

Both Novavax and Gavi are committed to their shared mission of promoting public health and this settlement allows them to continue working towards this goal. With this agreement, they hope to make a significant impact in the fight against COVID-19 and other infectious diseases, especially in vulnerable populations in lower income countries.
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