Novavax is paying up to a manufacturing partner to terminate a supply agreement. The company will pay Fujifilm Diosynth Biotechnologies up to $185 million in a settlement tied to the 'termination of manufacturing activity' at its CDMO partner. Novavax will pay the sum in four quarterly installments of $34.3 million starting on March 31, 2023, the company said.

As part of the deal, Fujifilm's subsidiary will be required to “use commercially reasonable efforts” to find manufacturing business and offset the losses that it would incur from the vacant capacity. The last two Novavax quarterly payments could end up being offset by any work that Fujifilm Diosynth Biotechnologies can land.