Novavax Terminates Agreement With GAVI Alliance For Sale Of Its COVID-19 Vaccines

Novavax Inc NVAX delivered a written notice to Gavi, the Vaccine Alliance, terminating with immediate effect an agreement for the sale of its COVID-19 vaccine to low- and middle-income countries.
The company cited Gavi's failure to procure the 350 million doses it had agreed to buy in May last year for the COVAX facility.
The termination has not resulted in any penalties, the company said in its regulatory filing.
Related: Canada Approves Novavax's COVID-19 Vaccine As Booster In Adults.
Novavax received a non-refundable advance payment of $350 million from Gavi last year and an additional $350 million this year after the vaccine got the WHO's emergency use listing, the company said.
As of November 18, the company had only received orders under the agreement for approximately 2 million doses.
The announcement comes on the back of poor demand for the company's shot amid a global supply glut for COVID-19 vaccines and waning demand.
Earlier this month, the company revised its FY22 sales forecast for the second time amid waning demand for COVID-19 vaccines.
The company now expects annual revenue to be approximately $2.0 billion, the low end of its prior forecast range of $2 billion - $2.3 billion.
Price Action: NVAX shares are up 0.63% at $19.07 premarket on the last check Tuesday.