Biotech & Health

Stipulations Revealed In Novavax’s Multimillion Dollar Funding Deal

MBS Staff

Last week Gaithersburg-based Novavax (NASDAQ: NVAX) got another dose of good news with a second round of funding from the Coalition for Epidemic Preparedness Innovations (CEPI). The deal happened because of the progress in the biotech’s COVID-19 vaccine candidate called NVX-CoV2373.

It first announced landing $4 million from CEPI back on March 10, and the company continued an open dialogue with the organization in the hopes of receiving additional funding. On May 11 Novavax reported it landed funding from CEPI that amounted to a whopping $384 million.

Since late last year Novavax’s market value has skyrocketed from around $100 million in November to as high as $2.5 billion in the past week. But new information was released tied to the recent announcement of additional funding, showing that the agreement is not set in stone and certain goals must be reached in order for the full transfer to happen.

The agreement says CEPI funding will be based on both parties establishing mutually agreed upon project-based budgets that meet certain milestones and the continuation of funding for NVX-CoV2373 is relative to the success and progress of competing COVID-19 vaccine candidates and treatments. Novavax would be reimbursed if CEPI or another authority like the World Health Organization and a local governing body finds a more viable COVID-19 candidate from a third-party. That payback would be based on geographical region.

Like many agreements Novavax’s funding is tied to producing tangible results but the CEPI funding is still a testament to the once fledgling biotech’s vaccine candidate and a record setting funding amount from the organization. Novavax says it will release more details in its quarterly report ending June 30, 2020.