Potential $400 Million Refund Regarding COVID-19 Vaccine Purchase

Novavax, Inc. and Gavi, the Vaccine Alliance (Gavi), today announced they have reached a settlement related to the 2021 Advance Purchase Agreement (APA) for Novavax's prototype COVID-19 vaccine.

To further a joint commitment to public health, Novavax and Gavi have agreed to terms that will prioritize Gavi's and Novavax's shared mission to save lives and protect people's health by increasing equitable and sustainable use of vaccines.

Under the terms, Novavax has made an initial payment of $75 million to Gavi and has agreed to make deferred payments of $80 million annually through December 31, 2028, which are due in quarterly installments and total up to $400 million.

Novavax's annual cash obligation would be offset or reduced pursuant to an $80 million yearly vaccine credit, which may 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.

Using the annual vaccine credit for qualifying sales would reduce Novavax's annual cash obligation.

In addition to the annual obligation, Novavax will provide an additional vaccine credit of up to $225 million, should there be additional demand, which can be applied towards qualifying dose purchases of any of the Company's vaccines in such countries throughout the five-year term.

"Novavax is pleased to have reached this agreement with Gavi as it gives us the ability to continue to work together toward our shared mission of ensuring equitable access to safe and effective vaccines," said John C. Jacobs, President and Chief Executive Officer, Novavax, in a press release on February 22, 2024.

"We look forward to a long-term partnership with Gavi to provide continued access to our protein-based non-mRNA COVID-19 vaccine."

This agreement brings the pending arbitration related to the APA to a close.

As of February 2024, Novavax's COVID-19 Vaccine (Nuvaxovid™XBB.1.5 dispersion for injection, NVX-CoV2601) is the leading protein-based vaccine used in various countries, including the United States.

As of February 22, 2024, Nuvaxovid is one of 13 COVID-19 vaccines Listed by the WHO.

Gavi is a public-private partnership that worked with the World Health Organization and various countries to supply vaccines during the recent pandemic.