Amid low vaccine demand, Novavax pulls out of Fujifilm manufacturing deal and inks $185M settlement

Novavax has been suffering from lower-than-expected demand for its COVID-19 vaccine after an FDA authorization this summer. Now, the company is paying up to a manufacturing partner to terminate a supply agreement. In a securities filing, Novavax said it will pay Fujifilm Diosynth Biotechnologies up to $185 million in a settlement tied to the 'termination of manufacturing activity' at its CDMO partner. Novavax will pay the sum in four quarterly installments of $34.3 million starting on March 31, 2023, the company said. But the settlement isn't guaranteed to reach that total. As part of the deal, Fujifilm's subsidiary will be required to “use commercially reasonable efforts” to find manufacturing business and offset the losses that it would incur from the vacant capacity.