Novavax Awarded BARDA Contract, Increasing Target to $4

According to Piper Jaffray, Novavax (NASDAQ: NVAX) has been awarded the BARDA contract, and is increasing its target to $4.

Piper Jaffray reported that, after the close, the Department of Health and Human Services (HHS) awarded the much anticipated new flu vaccine contract to 2 companies including Novavax for their Virus-Like Particle (VLP) seasonal flu vaccine. “The contract is for $97 million in committed funding during the first 3 years with an additional 24-month optional period valued at $82 million. It is important to note that Novavax will not receive the cash upfront, but rather recognize the funding as cost reimbursement.
Nonetheless, these committed funds dramatically strengthen Novavax's financial position as the company moves towards commercializing its first VLP vaccine.”

Novavax closed yesterday at $2.60.