The U.S. government has awarded Novavax (NASDAQ:NVAX) $1.6 billion to cover testing, commercialization and manufacturing of a potential coronavirus vaccine in the United States, with the aim of delivering 100 million doses by January 2021.
Shares of Novavax surged $30.77, or 38.7%, to $110.21 on the news.
The award is the biggest yet from "Operation Warp Speed," the White House program aimed at accelerating access to vaccines and treatments to fight the coronavirus that causes COVID-19.
According to CEO Stanley Erck, "What this Warp Speed award does is it pays for production of 100 million doses, which would be delivered starting in the fourth quarter of this year, and may be completed by January or February of next year."
It will also cover the cost of running a large Phase III trial — the final stage of human testing — which could begin as early as October.
A safe and effective vaccine is seen as critical to ending a pandemic that has claimed over half a million lives globally, about a quarter of them in the United States.
The Gaithersburg, Maryland-based company is somewhat of a dark horse in the race for a coronavirus vaccine. The company was not on the list of vaccine finalists for Warp Speed reported by The New York Times that included Moderna, AstraZeneca, Pfizer, J&J, and Merck.
In June, the U.S. Department of Defense awarded the company $60 million to support manufacturing of 10 million doses of its vaccine in 2020.
