Summary by Futu AI
On February 16, 2024, Novavax, Inc. entered into a Termination and Settlement Agreement with Gavi Alliance, effectively terminating their previous Advance Purchase Agreement from May 5, 2021, concerning the supply of Novavax's COVID-19 vaccine. This settlement resolves the arbitration initiated by Gavi against Novavax and releases both parties from all claims related to the agreement. Novavax has agreed to make an initial settlement payment of $75 million, which was paid on February 20, 2024, and will also make deferred payments totaling $400 million through December 31, 2028. These payments can be offset by annual vaccine credits that Gavi may use for qualifying purchases of Novavax's vaccines for low-income and lower-middle-income countries. Additionally, Novavax has granted Gavi a security interest in accounts receivable from the Serum Institute of India under a License and Supply Agreement related to the production of a malaria vaccine, which will continue for the term of the Settlement Agreement. The details of the Settlement Agreement will be included in Novavax's Annual Report on Form 10-K for the year ended December 31, 2023.