NOVAVAX, INC. Form 8-K (Sept. 30, 2022)

Summary

Current report on Form 8-K of Novavax, Inc. dated October 6, 2022, reporting under Item 1.01, Entry into a Material Definitive Agreement. The company states that on September 30, 2022 it and FUJIFILM Diosynth Biotechnologies entities entered into a Confidential Settlement Agreement and Release over amounts due to Fujifilm after the termination of manufacturing activity at FDBT under the Commercial Supply Agreement dated August 20, 2021. The company is responsible for up to $185 million, of which $47.8 million, the initial reservation fee, was credited on September 30, 2022. The balance is payable in four equal quarterly installments of $34.3 million beginning March 31, 2023, and the final two are mitigated by any replacement revenue. Both sides released claims over the cancelled batches.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event
reported): September 30, 2022

NOVAVAX, INC.

(Exact name of registrant as specified
in charter)

Delaware | 0-26770 | 22-2816046
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.)

21 Firstfield Road

Gaithersburg , Maryland 20878

(Address of Principal Executive Offices,
including Zip Code)

( 240 ) 268-2000

(Registrant’s telephone number,
including area code)

(Former name or former address, if changed
since last report.)

Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):

¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section
12(b) of the Act:

Title of each class | Trading Symbol(s) | Name of each exchange on which registered
Common Stock, Par Value $0.01 per share | NVAX | The Nasdaq Global Select Market

Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging
growth company ¨

If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01 | Entry into a Material Definitive Agreement.

On September 30, 2022, Novavax, Inc. (the “Company”),
FUJIFILM Diosynth Biotechnologies UK Limited (“FDBK”), FUJIFILM Diosynth Biotechnologies Texas, LLC (“FDBT”) and
FUJIFILM Diosynth Biotechnologies USA, Inc. (“FDBU” and together with FDBK and FDBT, “Fujifilm”) entered into
a Confidential Settlement Agreement and Release (the “Settlement Agreement”) regarding amounts due to Fujifilm in connection
with the termination of manufacturing activity at FDBT under the Commercial Supply Agreement (the “CSA”) dated August 20,
2021 and Master Services Agreement dated June 30, 2020 and associated statements of work (the “MSA”) by and between the Company
and Fujifilm.

Pursuant to the Settlement Agreement, the Company is responsible
for payment of up to $185 million (the “Settlement Payment”) to Fujifilm in connection with cancellation of manufacturing
activity at FDBT under the CSA, of which (i) $47.8 million, constituting the initial reservation fee under the CSA, was credited against
the Settlement Payment on September 30, 2022 and (ii) the remaining balance is to be paid in four equal quarterly installments of $34.3
million each beginning March 31, 2023. Under the Settlement Agreement, Fujifilm is required to use commercially reasonable efforts to
mitigate the losses associated with the vacant manufacturing capacity caused by the termination of manufacturing activities at FDBT under
the CSA, and the final two quarterly installments will be mitigated by any replacement revenue achieved by Fujifilm between July 1, 2023
and December 31, 2023.

Absent prior termination notification from the Company,
the MSA will be considered terminated with respect to all activities in FDBU and FDBT on October 21, 2022 and the impact of the termination
will be determined in accordance with the provisions of the MSA. The terms and conditions of the MSA and CSA will remain in full force
and effect with respect to the ongoing activities at FDBK. In addition, the Company and Fujifilm mutually released all claims relating
to (i) the cancellation of batches to be manufactured at FDBT under the MSA or CSA, (ii) FDBT facility idle time in 2022, (iii) failure
to complete product performance qualification testing of batches manufactured by Fujifilm by December 2021 and (iv) any obligation by
Fujifilm to reserve capacity or manufacture batches at FDBT for the benefit of the Company under the MSA or CSA.

The
foregoing description of the material terms of the Settlement Agreement does not purport to be complete and is qualified in its entirety
by reference to the Settlement Agreement, which will be filed with the Securities and Exchange Commission as an exhibit to the Company’s
Quarterly Report on Form 10-Q for the quarter ended September 30, 2022.

SIGNATURES

Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Novavax, Inc.
Date: October 6, 2022 | By: | /s/ John A. Herrmann III
Name: | John A. Herrmann III
Title: | Executive Vice President, Chief Legal Officer and Corporate Secretary

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