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Novavax shares jump on news of Canadian government settlement.
It shouldn’t be clear what number of doses of Novavax – the one product available on the market after 35 years – remain unused. Under the revised agreement, Novavax can even deliver fewer doses of its vaccine to Canada on a revised delivery schedule.
Nonetheless, Canada may terminate the agreement if Novavax doesn’t receive regulatory approval to manufacture the vaccines at a Canadian government bioproduction facility by December 31, 2024, as per the agreement.
The announcement is one other sign of hope for investors after the cash-strapped company expressed doubts about its viability earlier this yr.
In May, Novavax took a more optimistic outlook and announced a sweeping cost-cutting plan with its first-quarter earnings report. The corporate said it expected revenue in 2023 of between $1.4 billion and $1.6 billion.
Following the news, Novavax’s share price jumped about 30%. The corporate’s share price has fallen 4% for the reason that starting of the yr after losing greater than 90% of its value in 2022.
Novavax still faces quite a lot of challenges, including competing with Pfizer AND Modern within the business Covid vaccine market and a in a $700 million arbitration pending on the canceled contract for the acquisition of a vaccine.