Novavax to pay $149.75M to SK bioscience, sells $84.5M in stock to settle dispute

On August 8, 2023, Novavax, Inc. (the “Company”) and SK bioscience Co., Ltd. (“SK”) entered into a Settlement Agreement and General Release (the “Settlement Agreement”) regarding mutual release by the parties of all claims arising from or in relation to certain statements of work canceled by the Company (as described below, the “Subject SOWs”) under the Development and Supply Agreement dated August 11, 2020 (“DSA”) and the Collaboration and License Agreement, dated February 12, 2021 as amended on December 23, 2021 and July 1, 2022 (“CLA”, collectively the “Business Agreements”), and other statements or work under the Business Agreements, in each case, in connection with the cessation of all drug substance and drug product manufacturing activity at SK for supply to the Company.

In connection with the parties’ entry into the Settlement Agreement, the Company and SK terminated Statement of Work No. 1 dated as of December 23, 2021 as amended to date.

On August 8, 2023, the Company also entered into a Securities Subscription Agreement (the “Subscription Agreement”) with SK, pursuant to which the Company agreed to sell and issue to SK, in a private placement (the “Private Placement”), 6,500,000 shares of the Company’s common stock, par value $0.01 per share (the “Shares”) at a price of $13.00 per share for aggregate gross proceeds to the Company of approximately $84.5 million.