US Government Grants Novavax $1.6 Billion for COVID-19 Vaccine
Small bottles labeled with 'Vaccine' stickers stand near a medical syringe in front of displayed 'Coronavirus COVID-19' words in this illustration.
The American government recently granted Novavax Inc. $1.6 billion to cover testing and production of a potential vaccine for COVID-19 in the United States, with an objective of delivering by January, 100 million doses.
The award, which the United States Department of Health and Human Services announced, is the largest yet from the White House initiative called "Operation Warp Speed," aimed at fast-tracking access to treatment and vaccines to combat COVID-19.
According to reports, the shares of Maryland-based Novavax in Gaithersburg "increased 29 percent to $102 in morning trading."
Chief Executive of Novavax, Stanley Erck said, "What this Warp Speed grant does" is, it is paying for the manufacturing of the 100 million doses supposed to be delivered by the latter part of this year and may reach completion by until February 2021.
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Current Developments of COVID-19 Vaccine
Also, according to Erck, Novavax anticipates the results of the vaccine's Phase I trial, testing its safety within the coming week or so.
In addition, the firm aims to begin mid-trials next month or in September, with the Phase III trial to start in October, added Erck.
The announcement of HHS, reports state, follows an investment of $456 million in vaccine candidate of Johnson & Johnson in March, a grant amounting to $486 million to Moderna, Inc. in April, and support amounting to $1.2 billion in May in the vaccine of AstraZeneca PLC which is currently being formulated with Oxford University.
The US administration awarded Emergent Biosolutions, Inc., too, an amount of $628 million for the expansion of domestic production capacity for a potential vaccine for COVID-19, and medicines for COVID-19 treatment.
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Novavax Increases Hopes of having another Safe and Effective Vaccine
In a statement, Alex Azar, HHS Secretary said, Novavax's candidate's addition to the portfolio of Operation Warp Speed increases chances of having at least one "safe and vaccine" as soon as end-2020.
Other than the considerable amount of cash support for Novavax, the US government also signed a contract that cost $450 million with Regeneron Pharmaceuticals, Inc. for the manufacturing and supplying of its antibody mixture to treat COVID-19.
According to some medical experts, Novavax is considered a no-hoper for the COVID-19 vaccine. The company was not included on the list of finalists for Warp Speed vaccines, which the New York Times previously reported.
Among the names on the list, as earlier reported, were Moderna, Pfizer, Inc., Merck & Col, J&J, and AstraZeneca.
In May, Novavax obtained additional financial support of more than $385 million for the development of the COVID-19 vaccine from the private foundation, Coalition for Epidemic Preparedness Innovation or CEPI, after it invested in March, an amount of $4 million.
Last month, the US Defense Department provided a $60-million backing to Novavax in assistance to its production of 10 million doses this year, of its vaccine.
Presently, the Novavax CEO announced, the firm is transferring its vaccine technology to an unidentified contract manufacturer with two huge production facilities. This is on top of the undertaking which Emergent Biosolutions is currently doing.
Emergent Biosolutions is producing doses to supply Novavax's smaller clinical tests in their early and middle states.
By next year, the company is expecting to be able to produce 50 million doses each month in the US. Erck explained that this is a significant scale-up "in several manufacturing locations across the nation."
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Jul 08, 2020 08:25 AM EDT
