Novavax Tumbles on Cut to UK Covid Vaccine-Supply Deal, Capital Raising

Novavax's shares plummeted after the company said it had cut its vaccine supply to the UK.

The company said in a filing that it was obliged to repay the UK government after it agreed to supply Covid-19 vaccines.

After the announcements, the share price fell as much as 22% and is currently at its lowest point in over a year. It would be the biggest single day loss since August 9, when it lost 30% after cutting its revenue forecast. Since the beginning of the year, Novavax's shares have plummeted.

The company has faced many obstacles over the years, including the capital raise and supply agreement changes. The Covid-19 vaccine was approved for emergency use in the US in July of this year, despite delays. According to data from the Centers for Disease Control and Prevention, Novavax has delivered almost one million doses of its Covid vaccine in the US, a small fraction of the hundreds of millions by Pfizer and Moderna.

Moderna and Pfizer use the same technology for their vaccines but Novavax uses a different one.

The agreement with the UK originally called for 1 million doses and the possibility of an additional 15 million contingent on government approval. Novavax will have to repay $112 million and give only 7.5 million doses because it didn't get approval by the deadline. The company has until the end of the year to get approval for the rest of its supply.

At 10:55 a.m., Novavax shares were down 22%.