Novavax Announces BARDA Exercise Of Contract Option

(RTTNews) - Novavax Inc (NVAX), a clinical-stage biopharmaceutical company, said Tuesday it executed a contract modification with the U.S. Department of Health and Human Services, Biomedical Advanced Research and Development Authority (BARDA) to exercise the option period of its current contract for the advanced development of Novavax' recombinant seasonal and pandemic influenza vaccines and manufacturing capabilities for pandemic preparedness.

The contract was originally awarded in February 2011, with funding of up to $97 million over an initial base period ending in February 2014, and subsequently extended to September 2014. Through the second quarter of 2014, the company recognized about $65 million in revenue since the inception of the contract.

The option period adds scope and funding, and extends the contract for a planned 2-year period from September 2014 until September 2016. Under the option period, Novavax shall have continued access to the remainder of the $97 million base period funding after September 2014, and BARDA has agreed to award additional option period funding in the amount of $70 million.

The additional option period funding will support development activities leading to a planned Phase 3 clinical study in 2016. Development milestones under the Option period include completion of the quadrivalent seasonal Phase 2 clinical trial (expected to be initiated in 4Q2014), continued development of the H7N9/Matrix-M adjuvant pandemic influenza vaccine, along with other development work.