Novavax says Australia cancels delivery of some Covid-19 doses

In a regulatory filing, Novavax (NVAX) disclosed that, on December 12, the company entered into Amendment #5 to the Advanced Purchase Agreement, dated effective December 31, 2020, with the Commonwealth of Australia as Represented by the Department of Health and Aged Care, previously known as the Department of Health. Pursuant to the Amendment, the company acknowledged the cancellation by the Commonwealth of the delivery of certain doses of the company’s COVID-19 Vaccine scheduled for delivery between the fourth quarter of 2023 and the fourth quarter of 2025 and the parties agreed to credit approximately $31M of the advanced payment paid by the Commonwealth to the company pursuant to the Advanced Purchase Agreement against outstanding invoices and invoices for the future delivery of approximately 3M doses of COVID-19 Vaccine without requiring additional cash payments. The parties also agreed to an updated delivery schedule providing for the potential delivery of COVID-19 Vaccine or future variant COVID-19 Vaccine through the end of 2029. The Amendment further provides for certain remedies for the Commonwealth, including return of unused credit, cancellation of doses or termination of the Agreement, in the event the Company misses or under delivers doses to the Commonwealth or the Company fails to receive regulatory approval of a variant COVID-19 vaccine. The Amendment also provides the Commonwealth with the right to cancel doses if the Company fails to timely notify the Commonwealth of changes to its commercialization plans.