HOLLY SPRINGS – FUJIFILM Diosynth-Biotechnologies will receive $185 million following a settlement that the company agreed to with Novavax, according to a securities filing.
The filing, made by Novavax, notes that the settlement was made on September 30 and regards “amounts due to Fujifilm in connection with the termination of a manufacturing activity.”
FUJIFILM, which maintains its U.S. headquarters in its Morrisville facility and is moving closer to open its planned $2 billion facility in Holly Springs, will receive a payment of up to $185 million according to the securities filing, in four equal quarterly installments.
The partnership began in 2020, and was announced following a visit from then-President Donald J. Trump, as an effort to manufacture bulk drug substance for Novavax’s COVID-19 vaccine candidate.
A Novavax COVID-19 vaccine candidate received FDA approval earlier this year.
The arrangement between the two companies came after Novavax received a $1.6 billion award from the federal government as a part of Operation Warp Speed, the U.S. governmental program that sought to accelerate vaccine development to combat the spread of the novel coronavirus that causes COVID-19 infection.
Now, the settlement agreement will see the termination of that existing agreement “with respect to all activities” in the Morrisville location on October 21, 2022, according to the securities filing from Novavax.