Novavax (NASDAQ:NVAX) stock is taking off on Thursday after the company reached a settlement with global vaccine organization Gavi.
This settlement has Novavax agreeing to pay up to $475 million to Gavi following a dispute over payments for its Covid-19 vaccine. The crux of the matter had to do with Gavi seeking a refund on a $700 million advance payment for vaccines it later chose not to order from Novavax.
Novavax isn’t paying Gavi back all at once and will instead make payments through Dec. 31, 2028. This requires it to make quarterly payments to Gavi that come to $80 million per year. However, the total payments can be dropped if Gavi orders additional Covid-19 vaccines from the company.
Why This Matters to NVAX Stock
Only having to repay $475 million to Gavi is a win for Novavax, considering the vaccine organization was seeking a $700 million refund. It also clears out legal troubles that had analysts unsure about the future of the company.
News of the settlement has renewed interest in NVAX stock. That has more than 6.8 million shares changing hands as of this writing. That’s quickly closing in on its daily average trading volume of about 7.6 million shares.
NVAX stock is up 27.2% as of Thursday morning, erasing its losses since the start of the year.
Investors searching for more of the latest stock market stories are going to want to stick around!
We have all of the hottest stock market news that traders need to know about on Thursday. That includes everything happening with shares of Super Micro Computer (NASDAQ:SMCI) stock, Rivian (NASDAQ:RIVN) layoffs and a Lucid (NASDAQ:LCID) stock downgrade. You can find out all about these topics at the following links!
More Thursday Stock Market News
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- Rivian Layoffs 2024: What to Know About the Latest RIVN Job Cuts
- Cantor Fitzgerald Is Souring on Lucid (LCID) Stock
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
