(Reuters) – Global vaccine alliance Gavi said on Tuesday it was not in breach of a deal to purchase Novavax’s COVID-19 vaccine and that it reserved all rights, including the recovery of advance payments to the corporate.
Novavax said on Monday it delivered a notice to Gavi to terminate the COVID-19 vaccine sale agreement with immediate effect, citing the alliance’s failure to acquire the 350 million doses it had agreed to purchase in May last 12 months for the COVAX facility, a world vaccine distribution program.
“It is evident that Novavax won’t have the option to satisfy its commitment to fabricate” the doses under the agreement for COVAX before the top of 2022, a Gavi spokesperson told Reuters.
Greater than 18 months after signing the advance purchase agreement, Novavax has not been in a position to make a single dose available to COVAX from the contractually stipulated sites to-date, Gavi said.
Novavax had received a non-refundable advance payment of $350 million from Gavi last 12 months and an extra $350 million this 12 months after the vaccine got the World Health Organization’s emergency use listing.
Novavax also has a pact with Serum Institute of India for manufacturing a version of the vaccine under the brand Covovax, which might even be supplied to the COVAX facility.
Gavi’s spokesperson said Serum Institute had a 300 million dose commitment for Covovax, with options for 750 million more doses if needed.
Novavax is facing poor demand for its shot amid a world supply glut for COVID-19 vaccines and waning demand. It had earlier this month cut its full-year forecast yet again, hurt by late authorizations of its vaccine globally.
Novavax didn’t immediately reply to a request for comment on Gavi’s response to the termination.
(Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Editing by Anil D’Silva)
Copyright 2022 Thomson Reuters.
