The US government will purchase another 1.5M doses of Novavax Inc’s COVID-19 vaccine. According to the company, this is a part of its preparations for a commercial market for the shots once government purchases end. Novavax undiscloses the monetary terms of the transaction and the price per dose paid by the federal government.
The government under President Biden has indicated that the pandemic public-health crisis will come to an end in May. It’s also telling the COVID-19 vaccine producers that they’ll have to go out into the market and sell commercially.
According to people familiar with the arrangement, the Novavax deal would ensure a supply until private buyers take over purchases. This is likely to fall in Fall.
Under the terms of the agreement, Novavax will get a portion of funding for future work on COVID-19 vaccines from the federal government. The funding will evolve around adapting its shot to target future variants or placing it in smaller vials.
The government is shifting vaccination gears
Novavax’s protein-based COVID-19 vaccine is used less than other vaccines. Those include messenger RNA shots from Pfizer Inc and BioNTech SE, as well as Moderna Inc. However, some individuals are allergic to mRNA shots.
Silvia Taylor is Novavax’s chief communications officer. According to her, the US government favors protein-based alternatives as more valuable. According to a statement, they are working with Novavax to make it happen not just for this season but for the next one as well.
According to individuals familiar with the arrangement, the federal government purchased 3.2M doses of Novavax’s vaccine in July 2022. However, they have since expired or will do so soon.
The federal government will utilize funds it had previously earmarked for its $1.8M Operation Warp Speed arrangement with Novavax under the new arrangement.
Last year, the firm said that demand for its shots had been weaker than anticipated. This resulted in lowering its sales projections. The firm earned $735M in the third quarter, with $626M from the COVID-19 vaccine contributing to the total.
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