Novavax Inc said on Friday Canada will pay $349.6-million to settle the forfeiting of certain doses of its COVID-19 vaccine previously scheduled for delivery.
The U.S. vaccine maker also reached a deal with the country’s public works and government services department to amend the advance purchase contract after a sharp decline in global demand left a raft of COVID-19 doses unused.
The number of vaccine doses due for delivery has been reduced and the schedule for remaining doses to be shipped revised under the amended terms, the company said.
The payment will be made in two equal installments in 2023 and the original value of the contract remains unchanged.
However, the department can terminate the contract if the company fails to achieve regulatory approval for vaccine production at the Biologics Manufacturing Centre by Dec. 31, 2024.
Novovax – which has its COVID-19 vaccine as the only marketed product after 35 years in business – has raised doubts about its ability to remain in business, flagging uncertainties around its revenue and funding crunch.
The company said in May it expects 2023 revenue between $1.4-billion and $1.6-billion, of which $800-million was from “locked-in” overseas purchase contracts for the COVID shot that it has committed to ship this year.