Novavax Settlement and Moderna Earnings Boost

Novavax experienced a significant surge on Thursday following a favorable settlement with the nongovernmental organization Gavi regarding its Covid-19 vaccine. Additionally, strong earnings reported by Moderna also contributed to the stock's rise.

Settlement with Gavi

In a recent news release, Novavax announced the settlement pertaining to a 2021 advance purchase agreement for its prototype Covid-19 vaccine. Gavi, an international organization focusing on improving vaccine access for children in lower-income countries, was involved in this agreement.

Novavax's Chief Executive, John Jacobs, expressed satisfaction with the agreement, emphasizing the collaborative effort towards achieving equitable access to safe and effective vaccines.

Agreement Details

After terminating the initial agreement in November 2022 due to Gavi not meeting the purchase requirements for Covid-19 vaccines, Novavax faced a $700 million refund claim from Gavi. As part of the settlement, Novavax made an initial payment of $75 million to Gavi and committed to annual deferred payments of $80 million until December 2028, totaling up to $400 million.

Stock Performance

Novavax's shares surged by 25% on Thursday, reaching $4.98, marking one of the most substantial percentage increases since July 10, 2023, according to Dow Jones Market Data. The positive momentum was further bolstered by Moderna's impressive fourth-quarter earnings, driving Moderna's stock up by 15% to $100.87.

Regulatory Approval and Company Outlook

Despite facing challenges over the past year, Novavax remains committed to its mission and continues to adapt to meet evolving demands in the healthcare industry.