After a contentious dispute, Novavax has agreed to refund up to $400 million to the international organization that purchased Covid-19 shots as part of a global vaccination program, but found itself with vaccines that were no longer needed.
The agreement caps a disconcerting episode involving several vaccine makers and Gavi, the Vaccine Alliance, a public-private partnership that worked with the World Health Organization as the Covid-19 pandemic erupted four years ago to bring Covid shots to low- and middle-income countries. But as demand dried up last year, the vaccine makers kept $1.4 billion in prepayments for unused shots.
Gavi found itself in this precarious position due to events surrounding the initial efforts to create the global vaccination program. At the outset, vaccine makers favored supply contracts with wealthy nations that locked in high prices, a step that generated substantial criticism. Meanwhile, the WHO program, known as COVAX, was hoping to vaccinate 70% of the populations in mostly poor countries.