Novavax (NVAX) shares climbed more than 29% on Monday after the Canadian government agreed to pay the biotech company nearly $350 million for canceling delivery of some previously ordered COVID-19 vaccines.
The company specified in a settlement filing that both parties filed an amendment to the agreement reached in January 2021. The updated arrangement provided for Canada to make two payments, the first upon execution of the execution; amendment and the second when Novavax delivered the remaining doses of the vaccine in the second half of this year.
Additionally, the ;agreement required Novavax will produce the images at the Biologics Manufacturing Center (BMC) of the National Research Council of Canada in Montreal in 2024 and 2025.
The Canadian government has the right to terminate the agreement if the company fails to obtain the #39; regulatory approval for the use of the BMC no later than December 31, 2024 .
Despite Monday' s gains, Novavax shares were still down nearly 10% year-to-date. img src=”/wp-content/uploads/2023/07/583e64ab6f801c845cc627e4c9522f4b.png” />
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Source: investopedia.com
