Novavax shares moved higher after the vaccine maker announced that it would be paid $349.6 million from Canada for an unspecified quantity of forfeited COVID-19 vaccines previously set for delivery.
Canada will pay the Maryland-based company in two equal installments in 2023, Novavax said in a Securities and Exchange Commission (SEC) filing.
The original value of the contract remains unchanged but under the amended agreement Novavax will provide Canada with fewer doses of its vaccine on a revised delivery schedule.
Canada is able to terminate the agreement if Novavax does not achieve regulatory approval for its Biologics Manufacturing Centre for vaccine production in Montreal by December 31, 2024.
The payment from Canada will provide Novavax with much-needed cash after the company earlier this year warned it may not make it through 2023 due to uncertainty around demand for its COVID-19 vaccine.
Investors welcomed the news, sending Novavax shares 25.3% higher to US$9.06 at noon on Monday.
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