Novavax stock surges after resolving Gavi vaccine dispute
Vaccine developer Novavax (NVAX) is seeing its stock skyrocket after resolving a dispute with the global nonprofit vaccine alliance Gavi. In an agreement, Novavax has refunded a large portion of Gavi's payment for COVID-19 vaccines that were not delivered.
Yahoo Finance Health Reporter Anjalee Khemlani breaks down the details.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
JOSH LIPTON: Shares of Novavax rising today that's after resolving a battle with a global nonprofit regarding COVID-19 vaccines. Yahoo Finance's Anjalee Khemlani joins us now with more. Anjalee.
ANJALEE KHEMLANI: That's right, Josh. So Novavax coming out with this agreement to refund a portion of the advance payments given to it by Gavi, which was supposed to go towards doses that never came. We know the Novavax saga has been full of hurdles in terms of it reaching the finish line when it came to the COVID-19 doses, basically missing the pandemic altogether.
Initially, Gavi had given about $700 million. And that had stayed on Novavax's books as a potential liability, that it had really worried investors. And that is more by the way than the cash on hand the currently the company had reported back in September about 666 million only.
So right now, that May agreement from 2021 has been reversed. The issue has been resolved. And the companies are looking to working together. Novavax already repaying $75 million of the agreed 400 million. That would be the total that they agreed to refund.
And then there's also talk of in the middle of this agreement, credits essentially, so that Gavi can access Novavax doses, whether it be COVID or others down the line. So this as you can see on your screen really giving the company a boost today, really had been hurting for one after the continued sort of disappointments along the way in the last couple of years. So good news for Novavax there.
JOSH LIPTON: Anjalee, thank you so much. Appreciate it.
