LONDON (ShareCast) - (Sharecast News) - Novavax said on Tuesday that it has been awarded $1.6bn in government funding to develop its Covid-19 vaccine.
The US biotechnology company has been selected to take part in Operation Warp Speed, which is a US government programme aiming to deliver millions of doses of a safe, effective coronavirus vaccine in 2021.

The funding will allow Novavax to complete late-stage clinical development, including a pivotal Phase 3 clinical trial, to establish large-scale manufacturing and to deliver 100 million doses of its coronavirus vaccine candidate, NVX‑CoV2373, as early as late 2020.

Novavax shares surged on the news and by 1120 BST, they were trading up 32% at $104.50 in pre-market trade.

President and chief executive officer Stanley C. Erck said: "The pandemic has caused an unprecedented public health crisis, making it more important than ever that industry, government and funding entities join forces to defeat the novel coronavirus together. We are honoured to partner with Operation Warp Speed to move our vaccine candidate forward with extraordinary urgency in the quest to provide vital protection to our nation's population.

"We are grateful to the US government for its confidence in our technology platform, and are working tirelessly to develop and produce a vaccine for this global health crisis."

Under the terms of the agreement, Novavax will demonstrate that it can rapidly stand up large-scale manufacturing and transition into ongoing production, including the capability to stockpile and distribute large quantities of the vaccine when needed.

Novavax said the agreement will fund the late-stage clinical studies necessary to determine the safety and efficacy of the vaccine, including a pivotal Phase 3 clinical trial with up to 30,000 subjects beginning in autumn.

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