Faced with “significant uncertainty”, Novavax evokes a suspension of payments

(New York) The American laboratory Novavax, known for having produced one of the vaccines against the coronavirus, indicated on Tuesday that it faced “significant uncertainty” about its cash flow in the coming year, citing the risk of a possible suspension of payments.


The action of the group of Gaithersburg (Maryland) plunged more than 25% in trading after the close of Wall Street.

The laboratory revealed on Tuesday that the US government had notified it of the early end, in December, of the vaccine purchase agreement between the two parties.

This decision should deprive Novavax of part of the envelope of 460 million dollars still planned and amputate its cash flow accordingly.

In addition, the pharmaceutical group is entangled in a dispute with the international alliance Gavi, a public-private partnership intended to improve access to vaccines in disadvantaged countries.

At the end of November, Novavax had unilaterally broken the agreement providing for the supply of 350 million doses of its anti-COVID-19 vaccine, noting that Gavi had only placed a firm order for 2 million units.

The alliance has since demanded from Novavax the 700 million dollars paid, as a deposit, to the laboratory, which refuses.

On Tuesday, the group announced that the file was subject to an arbitration procedure in order to settle the dispute.

“Given this uncertainty, there are substantial doubts about our ability to continue our business beyond one year,” Novavax explained.

Novavax’s COVID-19 vaccine, dubbed Nuvaxovid, only received FDA clearance last July, more than a year and a half after the fire. FDA green to Pfizer and Moderna versions.

Nuvaxovid relies on a more traditional technique than the messenger RNA used by Pfizer and Moderna.

After having benefited from a big appetite from investors in 2020 and 2021, like the other listed pharmaceutical groups manufacturing an anti-coronavirus vaccine, the Novavax title has since collapsed by 97%.


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