Novavax (NVAX) - Get Free Report jumped Wednesday after the biotech said it had reached an agreement with the European Commission to sell as many as 200 million doses of the company's COVID-19 vaccine.
Shares of the Gaithersburg, Md., company at last check were up 17% to $221.50.
The agreement covers the purchase of up to 100 million doses of the vaccine with the option for an additional 100 million doses through 2023, Novavax said.
Delivery is contingent upon a successful review and approval by the European Medicines Agency.
The company said it was working to complete its rolling submission for the vaccine to the agency in the third quarter and it expects delivery of initial doses to begin following approval.
Some European countries have brought back nighttime curfews in response to a surge in the Delta variant.
France, which is battling a fourth wave of the virus, is requiring people to show proof of vaccination or a negative coronavirus test to enter restaurants, bars, shopping malls and public transport. Italy is introducing a similar mandate.
"As new coronavirus variants are spreading in Europe and around the world, this new contract with a company that is already testing its vaccine successfully against these variants is an additional safeguard for the protection of our population," Ursula von der Leyen, president of the European Commission, said in a statement.
Last month, the company's COVID-19 vaccine candidate showed high efficacy rates against both the original strain of the virus as well as the Alpha variant.
"With clinical data from our trials showing strong efficacy against variants of concern and variants of interest," Novavax President and Chief Executive Stanley Erck said in a statement, "we believe that our vaccine candidate will play a critical role in the effort to help control the pandemic in the EU and other regions in the world."