Novavax Scrambles for Settlement Following Covid Vaccine Demand Scarcity

Following an FDA approval of the Covid 19 vaccination in 2021, Novavax has been dealing with fewer requests for the inoculation than anticipated.

Novavax stated that it will make a settlement payment at a maximum of $185 million to Fujifilm Diosynth Biotechnologies in connection with the “termination of manufacturing activity” at its Contract Development and Manufacturing Organization partner. From the last day of March next year, the business will deliver the amount in quarterly payments of $34.3 million.

However, the agreement states that Fujifilm must “use commercially reasonable efforts” to locate manufacturing clients in order to make up for the losses resulting from the lower demand. Any work that they are able to secure may wind up offsetting the previous two payments by Novavax.

After repeated postponements, Novavax received approval for the vaccine in the United States in July. However, despite being given 841,000 doses, just less than 33,000 have been administered.

In contrast, over 230 million doses of Moderna and 370 million doses of Pfizer have been given in the United States.

The Novavax vaccine had been indicated as a possible replacement for the market leading mRNA injections. However the series of setbacks meant they could not gain significant traction in the US market.

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