<PAGE>   1
      AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MARCH , 1997
                                              REGISTRATION NO. __________

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM S-3

            REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
                         ------------------------------

                                 NOVAVAX, INC.
             (Exact name of registrant as specified in its charter)


<TABLE>
         <S>                                         <C>
                  DELAWARE                              22-2816046
         (State or other jurisdiction of             (I.R.S. Employer
         incorporation or organization)              Identification Number)
</TABLE>


                     8320 GUILFORD ROAD, COLUMBIA, MD 21046
                                 (301) 854-3900
         (Address, including zip code, and telephone number, including
                 area code, of registrant's principal executive
                                    offices)

                               JOHN O. MARSH, JR.
                                 NOVAVAX, INC.
                               8320 GUILFORD ROAD
                               COLUMBIA, MD 21046
                                 (301) 854-3900
           (Name, address, including zip code, and telephone number,
                  including area code, of agent for service of
                                    process)

                                With a copy to:
                              DAVID A. WHITE, ESQ.
                            WHITE & MCDERMOTT, P.C.
                          65 WILLIAM STREET, SUITE 209
                              WELLESLEY, MA 02181
                                 (617) 431-1700

          Approximate date of commencement of proposed sale to the public: As 
soon as practicable and from time to time after the effective date of this 
Registration Statement.

          If the only securities being registered on this Form are being
offered pursuant to dividend or interest reinvestment plans, please check the
following box. [ ]

          If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. [X]

          If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering. [ ]

          If this Form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ]


<PAGE>   2



          If delivery of the prospectus is expected to be made pursuant to Rule 
434, please check the following box.  [ ]


                        CALCULATION OF REGISTRATION FEE

<TABLE>
<CAPTION>
===============================================================================================
                                     Proposed Maximum   Proposed Maximum
Title of Securities     Amount to    Offering Price     Aggregate Offering    Amount of
to be Registered be     Registered   Per Share          Price                 Registration Fee
===============================================================================================
<S>                    <C>           <C>                <C>                   <C>
Common Stock            1,200,000
($.01 par value)        shares        $ 4.09 (1)        $ 4,912,500           $ 1,693.97

Common Stock            600,000
($.01 par value)        shares (2)    $ 6.00 (3)        $ 3,600,000           $ 1,241.38

Common Stock            600,000
($.01 par value)        shares (4)    $ 8.00 (3)        $ 4,800,000           $ 1,655.17
                                                                              ----------

                       Total Fee ...........................................  $ 4,590.52

</TABLE>


(1) Estimated solely for the purpose of determining the registration fee and
computed pursuant to Rule 457(c), based upon the average of the high and low
sale prices on February 27, 1997, as reported by the American Stock Exchange.

(2) Consists of shares which may be acquired pursuant to a warrant exercisable
at a price of $6.00 per share.

(3) Estimated solely for the purpose of determining the registration fee and
computed pursuant to Rule 457(g).

(4) Consists of shares which may be acquired pursuant to a warrant exercisable
at a price of $8.00 per share.

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES
AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE
A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(A) OF THE
SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME
EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(A),
MAY DETERMINE.



<PAGE>   3



                                 NOVAVAX, INC.
                 CROSS REFERENCE SHEET PURSUANT TO ITEM 501(b)
              OF REGULATION S-K SHOWING LOCATION IN PROSPECTUS OF
                   INFORMATION REQUIRED BY ITEMS OF FORM S-3




<TABLE>
<CAPTION>
FORM S-3 REGISTRATION
STATEMENT ITEM AND HEADING                                             LOCATION IN PROSPECTUS
- --------------------------                                             ----------------------
<S>                                                                   <C>
   1. Forepart of Registration Statement
      and Outside Front Cover Page of
      Prospectus..................................................     Facing Page of Registration
                                                                       Statement; Cross-Reference Sheet;
                                                                       Outside Front Cover Page of
                                                                       Prospectus
   2. Inside Front and Outside Back
      Cover Pages of Prospectus...................................     Inside Front Cover and Outside Back
                                                                       Cover of Prospectus; Available
                                                                       Information; Incorporation by
                                                                       Reference
   3. Summary Information, Risk Factors and
      Ratio of Earnings to Fixed Charges..........................     Risk Factors; Available Information
   4. Use of Proceeds.............................................     Use of Proceeds
   5. Determination of Offering Price.............................     *
   6. Dilution....................................................     *
   7. Selling Security Holders....................................     Selling Stockholder
   8. Plan of Distribution........................................     Plan of Distribution
   9. Description of Securities to be Registered..................     *
  10. Interests of Named Experts and Counsel......................     Legality of Common Stock; Experts
  11. Material Changes............................................     *
  12. Incorporation of Certain Documents
      by Reference................................................     Incorporation of Certain Documents
                                                                       by Reference
  13. Disclosure of Commission Position on
      Indemnification for Securities Act Liabilities..............     Indemnification
</TABLE>

- -------------------------------------------
* Item is omitted because it is either not required or inapplicable.



<PAGE>   4


INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES
IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.

                   SUBJECT TO COMPLETION, DATED MARCH 3, 1997

                                 PROSPECTUS
                                NOVAVAX, INC.
              2,400,000 SHARES OF COMMON STOCK ($.01 PAR VALUE)
                      ---------------------------------

     This Prospectus relates to the offer and sale of up to 2,400,000 shares
(the "Shares") of Common Stock, $.01 par value (the "Common Stock"), of
Novavax, Inc. ("Novavax" or the "Company") comprised of (i) 1,200,000 shares
being acquired concurrently with the effectiveness of the Registration
Statement of which this Prospectus forms a part (the "Registration Statement")
by a certain stockholder of the Company (the "Selling Stockholder") and (ii)
1,200,000 shares which may be acquired upon the exercise of warrants to be
granted to the Selling Stockholder concurrently with the effectiveness of the
Registration Statement. The Shares may be offered and sold by the Selling
Stockholder from time to time in open market or privately negotiated
transactions at market prices prevailing at the time of sale, at prices related
to such prevailing market prices or at negotiated prices. The Selling
Stockholder may effect such transactions by selling the Shares to or through
broker-dealers and such broker-dealers may receive compensation in the form of
discounts, concessions or commissions from the Selling Stockholder or the
purchasers of the Shares for whom such broker-dealers may act as agent or to
whom they sell as principal or both (which compensation to a particular
broker-dealer might be in excess of customary commissions). See "Selling
Stockholder" and "Plan of Distribution."

          None of the proceeds from the sale of the Shares by the Selling
Stockholder will be received by the Company. The Company has agreed to bear
certain expenses (other than selling commissions) in connection with the
registration and sale of the Shares being offered by the Selling Stockholder,
estimated at $35,000. The Company has agreed to indemnify the Selling
Stockholder against certain liabilities, including certain liabilities under
the Securities Act of 1933, as amended (the "Securities Act").

          The Common Stock of the Company is listed for quotation on the
American Stock Exchange under the symbol NOX. On February 27, 1997, the closing
sale price of the Common Stock, as reported by the American Stock Exchange, was
$4.19 per share.

          The Selling Stockholder and any broker-dealers or agents that 
participate with the Selling Stockholder in the distribution of the Shares may 
be deemed to be "underwriters" within the meaning of the Securities Act, and 
any commissions received by them and any profit on the resale of the Shares 
purchased by them may be deemed to be underwriting commission or discounts 
under the Securities Act.
        ---------------------------------------------------------------

AN INVESTMENT IN THE SECURITIES REGISTERED HEREBY INVOLVES A HIGH DEGREE OF
RISK.  SEE "RISK FACTORS" COMMENCING ON PAGE 8.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE



<PAGE>   5



COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.  ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

NEITHER THE DELIVERY OF THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL,
UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE
IN THE INFORMATION SET FORTH IN THIS PROSPECTUS OR IN THE AFFAIRS OF THE
COMPANY SINCE THE DATE HEREOF. NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION
OR TO MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS,
AND IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED
UPON AS HAVING BEEN AUTHORIZED BY THE COMPANY. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFER TO SELL, OR A SOLICITATION OF AN OFFER TO BUY, ANY
SECURITIES IN ANY JURISDICTION OR TO ANY PERSON TO WHOM IT IS UNLAWFUL TO MAKE
SUCH OFFER OR SOLICITATION IN SUCH JURISDICTION.

        ----------------------------------------------------------------

                  The date of this Prospectus is March , 1997.

                                       2


<PAGE>   6



                INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

The following documents filed with the Securities and Exchange Commission (the
"Commission") are incorporated herein by reference;


<TABLE>
          <S>     <C>
          1.      The Company's Annual Report on Form 10-K for the fiscal year ended
                  December 31, 1995;

          2.      The Company's Quarterly Report on Form 10-Q for the fiscal quarter ended
                  March 31, 1996;

          3.      The Company's Quarterly Report on Form 10-Q for the fiscal quarter ended
                  June 30, 1996;

          4.      The Company's Quarterly Report on Form 10-Q for the fiscal quarter ended
                  September 30, 1996;

          5.      The Company's definitive Proxy Statement, dated April 5, 1996 relating to the
                  Annual Meeting of Stockholders held on May 9, 1996; and

          6.      The description of the Common Stock contained in the Company's Registration
                  Statement on Form 10, File No. 0-26770 filed on September 14, 1995, filed
                  pursuant to Section 12(b) of the Exchange Act.
</TABLE>


          All reports and other documents filed by the Company with the
Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), subsequent to the date
hereof and prior to the filing of a post-effective amendment which indicates
that all securities covered by this Prospectus have been sold or which
deregisters all such securities then remaining unsold, shall be deemed to be
incorporated by reference herein and to be a part hereof from the date of the
filing of such reports and documents.

          Any statement contained in a document incorporated or deemed to be
incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Prospectus to the extent that a statement contained herein
or in any other subsequently filed document which also is or is deemed to be
incorporated by reference herein modifies or supersedes such statement. Any
statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Prospectus.

          The Company will provide without charge to each person to whom a copy
of this Prospectus is delivered, upon written or oral request of any such
person, a copy of any or all of the documents which are incorporated herein by
reference, except for certain exhibits to such documents. Requests should be
directed to the principal executive offices of the Company, 8320 Guilford Road,
Columbia, MD 21046, Attention: Elaine T. Bennett, telephone: (301) 854-3900.

                             AVAILABLE INFORMATION

          The Company is subject to the informational requirements of the
Exchange Act, and in accordance therewith, files reports and other information
with the Commission. Reports, proxy and information statements and other
information filed by the Company with the Commission pursuant to the
informational requirements of the Exchange Act may be inspected and copied at
the public reference facilities maintained by the Commission at 450 Fifth
Street, N.W., Washington, D.C. 20549 and at the Commission's regional offices
located at 7 World Trade Center, Suite 1300, New York, New York 10048, and at
Northwest Atrium Center, 500 West Madison Street, Suite 1400, Chicago, Illinois
60661-2511. Copies of such materials also may be obtained from the

                                       3


<PAGE>   7

Public Reference Section of the Commission at 450 Fifth Street, N.W.,
Washington, D.C. 20549 at prescribed rates. In addition, the Commission
maintains a World Wide Web site that contains reports, proxy and information
statements and other information filed electronically by the Company since May
1996 at the following address: http://www.sec.gov. The Company has filed with
the Commission in Washington, D.C. a registration statement (herein, together
with all amendments and exhibits, referred to as the "Registration Statement")
under the Securities Act with respect to the securities offered hereby. This
Prospectus does not contain all the information included in the Registration
Statement, certain items of which are omitted in accordance with the rules and
regulations of the Commission. For further information pertaining to the
Company and the Common Stock offered hereby, reference is made to such
Registration Statement and the exhibits thereto.

          The Company's Common Stock is listed on the American Stock Exchange.
Reports, proxy and information statements and other information concerning the
Company can be examined at the American Stock Exchange Inc., 86 Trinity Place,
New York, New York 10006.

               SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

          Certain statements under the captions "The Company," "Recent
Developments" and "Risk Factors" contained in this Prospectus or as may
otherwise be incorporated by reference herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"). Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Such factors include,
among other things, the following: general economic and business conditions;
competition; technological advances; ability to obtain rights to technology;
ability to obtain and enforce patents; ability to commercialize and manufacture
products; results of preclinical studies; results of research and development
activities; business abilities and judgment of personnel; availability of
qualified personnel; changes in, or failure to comply with, governmental
regulations; ability to obtain adequate financing in the future; and other
factors referenced in this Prospectus. See "Risk Factors."

                                  THE COMPANY

          Novavax, Inc. ("Novavax" or the "Company") is a biopharmaceutical
company focusing on the research and development of proprietary topical and
oral drug delivery technologies. The Company's technology platforms involve the
use of proprietary microscopic organized lipid structures as vehicles for the
delivery of a wide variety of drugs and other therapeutic products, including
certain hormones, anti-bacterial and anti-viral products and vaccine adjuvants.
The Company's lead product candidates, ESTRASORB(TM), a topical estrogen cream,
and Helicore(TM), an oral anti-bacterial preparation for the treatment of
Helicobacter pylori infection, have completed Phase I human clinical trials.
The Company has recently entered Phase I human clinical studies with
ANDROSORB(TM), a topical testosterone cream.

THE NOVAVAX TECHNOLOGY PLATFORMS

          Novavax has developed proprietary topical and oral drug delivery
technologies using organized lipid structures (collectively, the "Novavax
Technologies"). To date, the Company has utilized its technology in the
development of Novasome lipid vesicles and micellar nanoparticles, which are
sub-micron size lipid structures that also possess encapsulation capabilities.
These structures may help with targeted delivery and controlled release. The
Company believes its technologies may allow for the more cost-effective
delivery of a wide variety of drugs and other therapeutics than phospholipid
liposomes and other delivery vehicles.



                                      4


<PAGE>   8

          Most commercial liposomes are composed of delicate phospholipids. Due
to their inherent lack of stability and carrying capacity limitations, a
limited number of drugs may be used with phospholipid liposomes. While capable
of encapsulating certain (principally water soluble) drugs, phospholipid
liposomes have a number of significant disadvantages including their expense
and the need to use potentially hazardous organic solvents in their
manufacture. In addition, the standard, multi-step phospholipid manufacturing
process yields relatively small quantities of liposomes.

Novasome(R) lipid vesicles

          Novasome lipid vesicles are proprietary organized lipid structures in
which drugs or other materials can be encapsulated for delivery into the body
topically or orally. Novasome lipid vesicles are made using the Company's
patented manufacturing process from a variety of readily available chemicals
called amphiphiles, which include fatty alcohols and acids, ethoxylated fatty
alcohols and acids, glycol esters of fatty acids, glycerol fatty acid mono and
diesters, ethoxylated glycerol fatty acid esters, glyceryl ethers, fatty acid
diethanolamides and dimethyl amides, fatty acyl sarcosinates, "alkyds" as well
as phospholipids. IGI, Inc. ("IGI"), the Company's former parent, currently
uses Novasome lipid vesicles in a wide variety of cosmetic applications,
including products sold by Estee Lauder and Revlon under such labels as
Prescriptives and Almay. To date, IGI has sold hundreds of tons of products
that incorporate Novasome technologies.

          The Company believes Novasome lipid vesicles have a number of
proprietary features that may be applicable in the delivery of human
therapeutics. Because Novasome lipid vesicles consist primarily of inexpensive
chemicals and the manufacturing process is a simple one, the Company believes
that the manufacturing cost of Novasome lipid vesicles is less than
phospholipid liposomes and other drug delivery vehicles. Novasome lipid
vesicles also have a large, stable central core that allows them to entrap and
deliver a wide variety of substances that may be too large or chemically
disruptive for phospholipid liposomes. In addition, the Company is able to
manipulate the structure and size of Novasome lipid vesicles in order to vary
the amount and rate of drug delivery into the body. This may enable Novasome
lipid vesicles to be utilized for the continuous delivery of therapeutics over
extended periods of time.

Micellar Nanoparticles

          Micellar nanoparticles ("MNPs") are submicron-sized, water miscible
lipid structures that have different structural characteristics and are
generally smaller than Novasome lipid vesicles. MNPs, like Novasome lipid
vesicles, are derived from amphiphile molecules.

          Novavax scientists have demonstrated the ability to incorporate
alcohol soluble drugs and pesticides, vaccine adjuvants, proteins, whole
viruses, flavors, fragrances and colors into MNPs. MNPs have the ability to
entrap ethanol or methanol soluble drugs and to deliver certain of these drugs
through intact skin. The MNP formulations used for the transdermal delivery of
drugs have cosmetic properties like creams and lotions.

Novavax Product Candidates

TOPICAL DRUG DELIVERY

          The Company is using its micellar nanoparticle technology in the
development of ESTRASORB, a cream designed for the delivery of estradiol
(natural estrogen) through the skin. Estrogen replacement therapy is currently
used worldwide by menopausal [and post-menopausal] women to prevent
osteoporosis, cardiovascular disease and other menopausal symptoms (e.g. "hot
flashes"). Current estrogen replacement products include oral tablets or, more
recently, transdermal patches. Oral estrogen tablets, however, have been
associated with side effects

                                       5


<PAGE>   9



primarily resulting from fluctuating blood hormone levels. Because of these
side effects, transdermal patches for estrogen replacement were developed.
While these patches help reduce blood hormone fluctuations, they may cause skin
irritation and patient inconvenience associated with wearing and changing an
external patch.

          The Company believes that ESTRASORB may offer several advantages over
existing therapies used for estrogen replacement. ESTRASORB is a lotion that
may be applied to the skin much like a typical cosmetic cream. The Company
believes ESTRASORB will be able to deliver a continuous amount of estrogen to
the patient without the fluctuations in blood hormone levels associated with
oral tablets. In addition, ESTRASORB does not contain materials that may cause
the skin irritation associated with transdermal patches.

          In 1995, the Company completed preclinical testing of ESTRASORB in a
primate model. Results of this study demonstrated that ESTRASORB can be
utilized to deliver estradiol through intact skin with maintenance of
therapeutic serum estradiol levels for six days after a single topical
application. Based on these results, the Company initiated a Phase I human
clinical trial of ESTRASORB directed to 10 symptomatic menopausal women. In
this study, each woman received a single topical application of ESTRASORB. This
study was completed in the fourth quarter of 1996 with no significant adverse
experiences noted. The Company plans to submit dose ranging clinical study
plans for ESTRASORB to the United States Food and Drug Administration (the
"FDA") in the first quarter of 1997.

          In September, 1996, the Company completed the preclinical testing of
ANDROSORB (testosterone) in its MNP transdermal drug delivery platform. In
these animal models, peak blood levels of testosterone were approximately three
times higher than testosterone dissolved in ethanol. After a single topical
cream application, peak serum levels of testosterone were as high as 35
nanograms per milliliter and persisted in the therapeutic range for 48 hours.

          Testosterone replacement therapy is currently used by males who are
testosterone deficient as a result of either primary or secondary hypogonadism.
Testosterone in males is required to maintain sexual function and libido,
maintain lean body mass, increase hemoglobin synthesis and maintain bone 
density. Current testosterone replacement therapy products include deep 
intramuscular injections or transdermal patches. The injections require 
frequent visits to a physician and may be associated with pain at the 
injection site and abscess. The transdermal patches may cause skin irritation 
and patient inconvenience associated with wearing and changing two to three 
external patches per day.

          The Company believes that ANDROSORB may offer several advantages over
current testosterone replacement therapies. ANDROSORB is a lotion that may be
applied to the skin. This would eliminate the need for intramuscular
injections. In addition, ANDROSORB does not contain materials that may cause
the skin irritation associated with transdermal patches. As a result of its
successful pre-clinical studies with ANDROSORB, the Company filed for and
received an Investigational New Drug Application with the FDA in the fourth
quarter of 1996. The Company has initiated a Phase I human clinical study in 10
testosterone deficient males. In this safety study, each male will receive a
single topical application of ANDROSORB.

          In September, 1996, the Company also completed the preclinical
testing of PROGESTSORBTM (progesterone) in its MNP transdermal drug delivery
platform. PROGESTSORB was as effective as ethanol for delivery of progesterone
transdermally. A single topical cream application of PROGESTSORB provided peak
serum levels of 10 nanograms per milliliter which persisted in the therapeutic
range for 48 hours. The Company is also developing an estrogen-progesterone
product candidate in its MNP transdermal delivery system for preclinical
testing.


                                       6


<PAGE>   10

          With its MNP transdermal drug delivery platform, the Company has now
completed preclinical studies on three drugs (estradiol, testosterone and
progesterone). Novavax plans to proceed with clinical development of these
pharmaceutical products. The Company believes its MNP and other technologies
are suitable for the delivery of additional alcohol soluble as well as other
drugs through the skin.

Helicore Microbicidal Preparations

          The Company has developed proprietary lipid structure formulations 
that it is using in the development of a non-antibiotic anti-bacterial 
preparation for the treatment of Helicobacter pylori ("H. pylori") infection 
in humans.  H. pylori was recognized in 1994 by the National Institutes of 
Health as a causative agent of peptic ulcer disease, antral gastritis and 
certain types of gastric cancer. It is estimated that 30-80 million adults in 
the U.S. are infected with H. pylori.  Each year the treatment of complications 
of H. pylori infections (i.e. peptic ulcer  disease) in the U. S. alone costs 
in excess of five billion dollars.  Current therapies for the treatment of 
H. pylori include the use of antibiotics alone or antibiotics in combination 
with drugs that inhibit acid production in the stomach. Problems associated 
with such therapies include,  but are not limited to, cost, toxicity, failure 
to sufficiently eradicate all the bacteria and acquired resistance to the 
antibiotic.

          In the fourth quarter of 1995, the Company completed a single-dose
Phase I human clinical study involving 20 subjects in which no clinically
significant side effects were found. Based on the results of this study, in
March 1996 the Company commenced a multiple-dose Phase I human clinical trial
directed to 20 non-symptomatic patients diagnosed with H. pylori infection. The
Company recently received permission from the FDA to proceed with the testing
of Helicorep10TM, an additional oral non-antibiotic anti-bacterial preparation
developed to eradicate H. pylori bacteria. Helicorep10 was given in multiple
doses to 10 non-symptomatic H. pylori positive subjects and no clinically
significant side effects were noted. This additional preparation brings the
total number of Helicore products in human clinical testing in non-symptomatic
H. pylori infected patients to three. The study was completed in the fourth
quarter of 1996 with no significant adverse experiences reported. The Company
hopes to initiate Phase II clinical trials with Helicore in 1997.

Vaccine Adjuvants

          Adjuvants are substances that make vaccines more effective. The
Company believes that certain of its organized lipid structures (e.g. Novasome
lipid vesicles and MNPs) may provide effective and safe adjuvant carrier
systems for a variety of vaccines. The Company believes both Novasome lipid
vesicles and MNPs may be used as vaccine adjuvants and protective carriers in a
variety of circumstances, including: (i) encapsulation and protection of
delicate antigenic materials from destruction by the body's normal enzymatic
processes; (ii) encapsulation of toxic materials, such as endotoxins and other
potent toxins, for gradual releases, thereby providing protection of the body
from the toxin while generating an immune response to the toxic antigen; (iii)
presentation of small peptide antigens to elicit a heightened cellular immune
response; and (iv) delivery of genes and other molecules into targeted cells.

Patents

          The Company has 36 U.S. patents and 15 pending applications covering
the composition, manufacture and use of its organized lipid structures and
related technologies.

Incorporation and Spin-off

          The Company was incorporated in Delaware in 1987. Its principal
executive offices are currently located at 8320 Guilford Road, Columbia,
Maryland. On December 12, 1995, the

                                       7


<PAGE>   11



Company's former parent, IGI, Inc., distributed its majority interest in
Novavax to the IGI stockholders (the "Distribution").

                              RECENT DEVELOPMENTS

         The primary focus of Novavax is the development of human
pharmaceuticals and drug delivery technologies. Historically, the focus of the
Company was on the development of human vaccines, vaccine adjuvants, drug
delivery technologies (such as ESTRASORB and ANDROSORB) and anti-infective
pharmaceuticals (such as Helicore). Novavax has developed several oral
vaccines, two of which (ECOVAX 0157(TM) and Shigella flexneri 2a) were granted
Investigational New Drug Application approvals and completed Phase I human
clinical studies. The Company's lead pharmaceutical product candidates,
ESTRASORB and Helicore, are completing Phase I human clinical studies and
ANDROSORB recently entered Phase I human clinical studies.

         Although the Company began development of its pharmaceutical product
candidates later than, and as byproducts of, its vaccine development, its
primary emphasis is now on these pharmaceutical product candidates for the
following reasons:

         -      Much larger potential markets

         -      Lower estimated clinical development costs

         -      Measurements of clinical efficacy are more easily defined

         -      Current financial resources do not permit concurrent 
                development of both multiple vaccine and pharmaceutical programs

         Consistent with prudent use of the Company's limited cash resources,
the clinical development programs for both oral active vaccine immunization
programs have been presently suspended in favor of the development of its three
lead pharmaceutical product candidates. The Company plans to submit dose
ranging clinical study plans for both ESTRASORB and Helicore to the FDA in the
first quarter of 1997. The Company has the potential to develop other human
pharmaceutical products utilizing its proprietary drug delivery platform
technologies dependent upon additional future capital.

         At the time of the Distribution, Dr. Edward B. Hager and Mr. John P. 
Gallo announced that they would remain as Chief Executive Officer and Chief 
Operating Officer, respectively, of the Company during a transition period until
not later than June 30, 1996.  Accordingly, on July 1, 1996 John O. Marsh, Jr. 
succeeded Dr. Hager as Chairman and Chief Executive Officer.  Subsequently, Mr.
Marsh appointed Denis M. O'Donnell, M.D., the President of Novavax, to the
additional position of Chief Operating Officer to succeed Mr. Gallo in that 
role.  Dr. Hager and Mr. Gallo remain directors of the Company.  In addition, 
in May, 1996 Ms. Elaine T. Bennett was appointed Vice President, Treasurer and 
Chief Financial Officer of the Company.

         On February 25, 1997, Mr. Marsh announced his retirement as Chairman
of the Board of Directors, effective immediately, and as Chief Executive
Officer effective upon the arrival of his replacement. The Board then elected
Richard F. Maradie as Chief Executive Officer commencing approximately March 4,
1997. Dr. Hager was elected as Chairman of the Board of Directors.

                                  RISK FACTORS

         In evaluating the Company and its business, prospective investors
should carefully consider the following risk factors in addition to the other
information appearing in or incorporated by reference in this Prospectus.


                                       8


<PAGE>   12

         Early Stage of Product Development. Novavax has not yet completed the
development of any products and has not begun to generate any revenue from the
commercialization of products. All of Novavax's potential products are in
research, development or early-stage clinical trials. The development of
products, if any, will require significant additional research, development,
preclinical and clinical testing, regulatory approval and investment prior to
commercialization, which may never occur. None of Novavax's pharmaceuticals or
other products is expected to be commercially available for at least several
years.

         Success in the pharmaceuticals market depends on Novavax's ability to
complete satisfactorily the development of pharmaceuticals based on the Novavax
Technologies that will be safe and efficacious and will have benefits not
available in competitive products; and no assurance can be given that it will
be successful in doing so. Novavax's potential products are subject to the
risks of failure inherent in the development of pharmaceutical products based
on new technologies. These risks include the possibilities that Novavax's
approach will not be successful; that any or all of Novavax's potential
products will be found to be unsafe, ineffective or otherwise fail to meet
applicable regulatory standards or receive necessary regulatory clearances;
that the potential products, if safe and effective, will be difficult to
develop into commercially viable products or manufacture on a large scale, be
uneconomical to market, or fail to obtain acceptance by the medical community;
that proprietary rights of third parties will preclude Novavax from marketing
such products; or that third parties will market superior or equivalent
products. There can be no assurance that any of these products will be
successfully developed and, whether produced by Novavax or by its licensees or
partners, will meet applicable regulatory standards, obtain required regulatory
approvals, be capable of being produced in commercial quantities at reasonable
costs or be successfully marketed.

         Absence of Revenue from Products. Novavax's future growth will depend
on its ability to commercialize its Novavax Technologies for human
pharmaceutical applications. To date, Novavax has not generated any revenue
from the sale of pharmaceuticals or other products, although it has received
insignificant development funds from potential collaborators or partners.
During the years ended December 31, 1993, 1994 and 1995, Novavax incurred net
losses of $4,790,033, $5,690,036 and $8,494,358, respectively. The losses have
resulted from expenses incurred in the Company's research and development
programs, protection of intellectual property and, to a lesser extent, from
other general, administrative and operating expenses. Novavax expects
cumulative losses will increase in the near-term as it conducts additional
clinical trials and seeks regulatory approval for its product candidates.
Payments from collaborative partners, if any, and investment income are
expected to be the only sources of revenue for the foreseeable future and
revenues from commercial sales of products are not expected for a number of
years, if at all. There can be no assurance that the Company will be successful
in entering into strategic alliances or collaborative arrangements that will
result in significant revenues. Novavax expects to continue to incur
substantial operating losses unless and until such time, if ever, as product
sales, licensing fees and royalty payments generate sufficient revenue to fund
its continuing operations. The time required to reach profitability is highly
uncertain. There can be no assurance that the Company will be able to achieve
profitability on a sustained basis, if at all.

         Additional Financing Requirements and Access to Capital. Novavax will
require substantial funds to continue its research and development, future
preclinical and clinical trials, regulatory approvals, establishment of
commercial-scale manufacturing capabilities, and marketing its products.
Novavax's capital requirements depend on numerous factors, including but not
limited to the progress of its research and development programs, the progress
of preclinical and clinical testing, the time and costs involved in obtaining
regulatory approvals, the cost of filing, prosecuting, defending and enforcing
any patent claims and other intellectual property rights, competing
technological and market developments, changes in Novavax's existing research
relationships, the ability of Novavax to establish collaborative arrangements,
the development of

                                       9


<PAGE>   13

commercialization activities and arrangements, and the purchase of additional
facilities and capital equipment. Novavax estimates that its existing cash
resources, together with the net proceeds of the Private Placement (as
hereinafter defined), will only be sufficient to finance its operations at its
current level for approximately 20-24 months. There can be no assurance,
however, that such estimate will be correct. Novavax will seek to obtain
additional funds for these purposes through public or private equity or debt
financings, collaborative arrangements with pharmaceutical companies or from
other sources. If additional funds are raised by issuing equity securities of
Novavax, dilution to then existing stockholders may result. There can be no
assurance that additional funding or bank financing will be available at all or
on acceptable terms to permit successful commercialization of the Novavax
Technologies and products. If adequate funds are not available, Novavax may be
required to significantly delay, reduce the scope of or eliminate one or more
of its research or development programs, or seek other alternatives to avoid
insolvency, including arrangements with collaborative partners or others that
may require Novavax to relinquish rights to certain of its technologies,
product candidates or products.

         Uncertainty of Patents and Proprietary Rights. Although Novavax has 36
issued and 15 pending United States patents, its success will depend, in large
part, on its ability to maintain its existing patents, obtain new patents,
maintain trade secret protection and operate without infringing on the
proprietary rights of third parties or having third parties circumvent
Novavax's rights. Novavax has U.S. and foreign patent rights covering its
Novavax Technologies, including its Novamix production equipment. The patent
positions of pharmaceutical companies can be highly uncertain and involve
complex legal, scientific and factual questions. To date, no consistent policy
has emerged regarding the breadth of biotechnology patent claims that are
granted by the United States Patent and Trademark Office or enforced by the
Federal courts. Thus, there can be no assurance that any of Novavax's existing
patents will not be challenged or future patent applications will result in the
issuance of patents, that Novavax will develop additional proprietary products
that are patentable, that any patents issued to Novavax will provide Novavax
with any competitive advantages or will not be challenged by any third parties,
that the patents of others will not impede the ability of Novavax to do
business or that third parties will not be able to circumvent Novavax's
patents. Furthermore, there can be no assurance that others will not
independently develop or duplicate similar technology or products, or, if
patents are issued to Novavax, design around the patents issued to Novavax. The
failure of the Company or its licensors to obtain or maintain patent protection
for the Company's products could have a material adverse effect on the Company.

         Novavax may be required to obtain licenses from third parties to avoid
infringing patents or other proprietary rights. No assurance can be given that
any licenses required under any such patents or proprietary rights would be
made available, if at all, on terms acceptable to Novavax. If Novavax does not
obtain such licenses, it could encounter delays in product introductions, or
could find that the development, manufacture or sale of products requiring such
licenses could be prohibited. In addition, Novavax could incur substantial
costs in defending itself in suits brought against Novavax on patents it might
infringe or in filing suits against others to have such patents declared
invalid.

         Some of Novavax's know-how and technology may not be patentable. To
protect its rights, Novavax requires employees, consultants, advisors and
collaborators to enter into confidentiality agreements. There can be no
assurance, however, that these agreements will provide meaningful protection
for Novavax's trade secrets, know-how or other proprietary information in the
event of any unauthorized use or disclosure. Further, Novavax's business may be
adversely affected by competitors who independently develop competing
technologies, especially if Novavax obtains no, or only narrow, patent
protection.

         Technological Change and Competition.  The pharmaceutical industry is 
subject to rapid and substantial technological change and intense competition.  
Competitors of Novavax in the

                                       10


<PAGE>   14



United States and abroad are numerous and include, among others, both large and
small pharmaceutical companies, biotechnology firms, universities and other
research institutions. There can be no assurance that Novavax's competitors
will not succeed in developing technologies and products that are more
effective than any which are being developed by Novavax or which would render
Novavax's technologies and products obsolete or noncompetitive. Most of these
competitors have substantially greater financial and technical resources and
production and marketing capabilities than Novavax. In addition, many of
Novavax's competitors have significantly greater experience than Novavax in
conducting preclinical testing and clinical trials of human pharmaceuticals and
obtaining FDA and other regulatory approvals of products for use in health
care. Accordingly, Novavax's competitors may succeed in obtaining FDA approval
for products more rapidly than Novavax. If Novavax commences significant
commercial sales of any products, it will also be competing with respect to
manufacturing efficiency and marketing capabilities, areas in which it has
limited or no experience.

         Need to Establish Collaborative Commercial Relationships; Dependence
on Partners. Novavax's business strategy for its products is to enter into
strategic alliances or licensing arrangements with corporate partners,
primarily pharmaceutical companies, relating to the development and
commercialization of certain products incorporating the Novavax Technologies
for commercialization outside the United States. There can be no assurance that
Novavax will be able to negotiate acceptable collaborative arrangements, that
such collaborations will be available to Novavax on acceptable terms, that any
such relationships, if established, will be scientifically or commercially
successful or that any collaborative partner will have economic motivation to
continue funding provided for under any such agreements or that such
collaboration will be successful. Novavax expects that under certain of these
arrangements, the collaborative partner will have the responsibility for
conducting human clinical trials and the submission for regulatory approval of
the product candidate with the appropriate regulatory agencies. Should the
collaborative partner fail to develop a marketable product, Novavax's business
may be adversely affected. There can be no assurance that Novavax's
collaborative partners will not be pursuing alternative technologies either on
their own or in collaboration with others, including Novavax's competitors, as
a means for developing treatments for the diseases targeted by these
collaborative programs. Novavax's business also will be affected by the success
of its corporate partners in marketing any successfully developed products
within the geographic areas in which such partners are granted marketing
rights. Novavax may retain manufacturing rights for some of the products that
it develops and licenses pursuant to arrangements with corporate partners.
However, there can be no assurance that Novavax will be able to retain such
rights on acceptable terms, if at all, or that Novavax will have the ability to
produce the quantities of product required under the terms of such
arrangements. Novavax's royalties from sales of products licensed to
collaborators, if any, may be less than the revenues Novavax could have
generated had it commercialized and marketed products itself.

         Attraction and Retention of Key Employees and Scientific
Collaborators. Novavax is highly dependent on the principal members of its
scientific and managerial staff, the loss of whose services could have a
material adverse effect on Novavax. Furthermore, recruiting and retaining
qualified scientific personnel to perform research and development work in the
future will also be critical to Novavax's success. There can be no assurance
that Novavax will be able to attract and retain such personnel on acceptable
terms given the competition among numerous pharmaceutical companies,
universities and non-profit research institutions for experienced scientists.
Novavax's anticipated growth and expansion into areas and activities requiring
additional expertise such as clinical testing, governmental approvals,
production and marketing, are expected to place increased demands on Novavax's
resources. These demands are expected to require the addition of new management
personnel and the development of additional expertise by existing management
personnel. The failure to acquire such services or to develop such expertise
could materially adversely affect Novavax's business.

                                      11


<PAGE>   15


         Limited Manufacturing Capability. The development and manufacture of
Novavax's products are subject to current good laboratory practices ("GLP") and
good manufacturing practices ("GMP") requirements prescribed by the FDA or
other standards prescribed by the appropriate regulatory agency in the country
of use. Novavax currently has the ability to produce quantities of Novasome
lipid vesicles sufficient to support its current needs. Novavax also has the
ability to produce quantities of its products sufficient to support its current
research and development and early-stage clinical trial needs. However, Novavax
will need to acquire additional manufacturing facilities and improve its
manufacturing technology in order to meet the volume and cost requirements for
later clinical trials and commercial production of its own pharmaceuticals if
it elects to do so. If Novavax decides to establish additional manufacturing
facilities, doing so will require substantial additional funds, the hiring and
retention of significant additional personnel and compliance with extensive
regulations applicable to such facilities. There can be no assurance that
Novavax will be able to obtain or manufacture such products in a timely fashion
at acceptable quality and prices, that it or its suppliers can comply with GLP
or GMP, as applicable, or that it or its suppliers will be able to manufacture
an adequate supply of product. If Novavax relies on collaborators, licensees or
contract manufacturers for the commercial manufacture of its products, the
Company will have only limited control over the commercial manufacturing of its
products. There can be no assurance that Novavax will be able to enter into any
such manufacturing arrangements on acceptable terms, if at all. If the Company
is not able to enter into commercial manufacturing agreements or develop its
own commercial manufacturing capacity, it could encounter delays in introducing
its products into certain markets, or find that the manufacture of its products
in these markets is adversely affected. There can be no assurance that the
parties to the Company's future commercial manufacturing agreements will
perform their obligations as expected, or that any revenue will be derived from
these commercial manufacturing agreements.

         Absence of Sales and Marketing Experience. Novavax expects to
commercialize and sell certain of its products through co-marketing
arrangements with third parties. In addition, Novavax may build a small
targeted direct sales group for products in markets that can be accessed with a
small to medium size sales force, if and when such products approach FDA
marketing approval. To date, though, Novavax has had no experience in sales,
marketing or distribution of its products. In order to market its products
directly, Novavax would need to develop a marketing staff and sales force with
technical expertise. There can be no assurance that Novavax will be able to
build such a marketing staff or sales force, that the cost of establishing such
a marketing staff or sales force will not exceed any product revenue or that
Novavax's direct sales and marketing efforts will be successful. In addition,
if Novavax succeeds in bringing one or more products to market, it may compete
with other companies that currently have extensive and well-funded marketing
and sales operations. There can be no assurance that Novavax's marketing and
sales efforts would compete successfully against such other companies. To the
extent Novavax enters into co-marketing arrangements, any revenue received by
Novavax will be dependent on the efforts of third parties and there can be no
assurance that such efforts will be successful.

         Government Regulation; Uncertainty of Clinical Trials. The production
and marketing of Novavax's products and ongoing research and development
activities are subject to regulation by numerous governmental authorities in
the United States and other countries. Prior to marketing, any human
pharmaceuticals developed by Novavax must undergo rigorous preclinical testing
and clinical trials, as well as an extensive regulatory approval process
mandated by the FDA and foreign regulatory agencies. These processes can take
many years and require the expenditure of substantial resources. The rate of
completion of clinical trials is dependent upon, among other factors, the rate
of patient enrollment. Patient enrollment is a function of many factors,
including the size of the patient population, the nature of the protocol, the
company's ability to manage the clinical trial, the proximity of patients to
clinical sites and the eligibility criteria for the study. Several factors,
such as delays in planned patient enrollment, may result in increased costs and
delays or termination of clinical trials prior to completion, which could have
a material adverse

                                       12


<PAGE>   16



effect on Novavax. Clinical trials generally must meet requirements for
institutional review board oversight and informed consent, as well as
regulatory agency prior review, oversight and good clinical practice
requirements. Data obtained from preclinical and clinical activities are
susceptible to varying interpretations which could delay, limit or prevent
regulatory approval. In addition, delays or rejections may be encountered based
upon changes in the policies of regulatory authorities for drug approval during
the period of product development and regulatory review of each submitted new
drug application or product license application. Novavax may be required to
demonstrate that the proposed product represents an improved form of treatment
over existing therapies. Novavax has limited experience in conducting and
managing the preclinical and clinical trials necessary to obtain government
approvals. There can be no assurance that the results of such clinical trials
will be consistent with the results obtained in preclinical studies or that the
results obtained in later phases of clinical trials will be consistent with
those obtained in earlier phases. A number of companies in the
biopharmaceutical industry have suffered significant setbacks in advanced
clinical trials, even after experiencing promising results in early animal and
human testing. There also can be no assurance that any human pharmaceutical
products will be shown to be safe and efficacious or that regulatory approval
for any such product will be obtained on a timely basis, if at all. Delays in
obtaining regulatory approvals would adversely affect the marketing of products
developed by Novavax and Novavax's ability to receive product revenue or
royalties. Moreover, if regulatory approval of a drug is granted, such approval
is likely to entail limitations on the indicated uses for which it may be
marketed. Further, even if such regulatory approval is obtained, a marketed
drug and its manufacturer are subject to continual review, and discovery of
previously unknown problems with a product or manufacturer may result in
restrictions on such product or manufacturer, including withdrawal of the
product from the market. Although Novavax intends to make use of fast-track
regulatory approval programs when possible, there can be no assurance that
Novavax will be able to obtain the clearances and approvals necessary for
clinical testing or for manufacturing and marketing its products. Existing or
additional government regulation could prevent or delay regulatory approval of
Novavax's products or affect the pricing or marketing of such products.

         Quarterly Fluctuations of Operating Results. Novavax's quarterly
operating results are likely to vary significantly depending on factors such as
the timing of new license agreements, the results of preclinical or clinical
trials, the timing of collaborative agreements for the development of products,
the timing of significant orders and the introduction of products by Novavax.
Novavax's expense levels are based in part on its expectations as to future
revenue. If revenue levels are below expectations, operating results will be
adversely affected. Novavax believes that period-to-period comparisons of its
operating results are not necessarily meaningful and should not be relied upon
as indications of future performance. As a result of the foregoing factors, it
is likely that in some future quarters, Novavax's revenue or operating results
will be below the expectations of public market analysts and investors. In such
event, the price of Novavax's Common Stock could be materially adversely
affected.

         Product Liability. Although Novavax is not currently a party to any
product liability litigation, the testing, manufacturing, marketing and sale of
human medical products entail potential product liability risks, including
claims made by consumers, health care providers, pharmaceutical companies or
others selling such products. There can be no assurance that substantial
product liability claims will not be asserted against Novavax. Novavax
currently has limited product liability coverage for the clinical research use
of its product candidates. Novavax does not have product liability insurance
for the commercial sale of its potential product candidates but intends to
obtain such coverage if and when its products are commercialized. Such
insurance, however, is expensive, difficult to obtain and may not be available
in the future on acceptable terms, or at all. No assurance can be given that
product liability insurance can be maintained in the future at a reasonable
cost or in sufficient amounts to protect Novavax against losses due to
liability. An inability to maintain insurance at an acceptable cost or to
otherwise protect against potential product liability could prevent or inhibit
the continued commercialization of Novavax's products. In

                                       13


<PAGE>   17

addition, a product liability claim in excess of relevant insurance coverage,
if any, or a product recall could have a material adverse effect on Novavax's
business, financial condition and results of operations.

         Hazardous Materials. Novavax's development and commercial activities
may involve the controlled use of hazardous materials, chemicals, viruses,
bacteria and other pathogens. Although Novavax believes that its safety
procedures for handling and disposing of such materials comply with the
standards prescribed by state, federal and local regulations, the risk of
accidental contamination or injury from these materials cannot be completely
eliminated. In the event of such an accident, Novavax could be held liable for
any damages that result and any such liability could exceed the resources of
Novavax. The Company may be required to incur significant costs to comply with
environmental laws and regulations in the future.

         Uncertainty of Third-Party Reimbursement. In both domestic and foreign
markets, the ability of Novavax to commercialize its product candidates will
depend, in part, on the availability of reimbursement from third-party payors,
such as government health administration authorities, private health insurers
and other organizations. Third-party payors are increasingly challenging the
price and cost-effectiveness of medical products. There can be no assurance
that Novavax-developed products will be considered cost effective. Significant
uncertainty exists as to the reimbursement status of newly-approved healthcare
products. There can be no assurance that adequate third-party insurance
coverage will be available for Novavax to establish and maintain price levels
sufficient for realization of an appropriate return on its investment in
developing new therapies. Government and other third-party payors are
increasingly attempting to contain medical costs by limiting both coverage and
the level of reimbursement of new therapeutic products approved for marketing
by the FDA and by refusing, in some cases, to provide coverage for uses of
approved products for disease indications for which the FDA has not granted
marketing approval. If adequate coverage and reimbursement levels are not
provided by government or third-party payors for uses of Novavax's products,
the market acceptance of these products would be adversely affected, which
could have a material adverse effect on Novavax's business, financial condition
and results of operations.

         Uncertainty Related to Medical Reform Measures. There have been a
number of federal and state proposals during the last few years to subject the
pricing of pharmaceuticals to government control and to make other changes to
the medical care system of the United States. It is uncertain what legislative
proposals will be adopted or what actions federal, state or private payors for
medical goods and services may take in response to any medical reform proposals
or legislation. Novavax cannot predict the effect these reforms may have on its
business, and no assurance can be given that any such reforms will not have a
material adverse effect on Novavax.

         Volatility of Stock Price; Possible Delisting; Absence of Dividends.
The market prices for securities of biotechnology and pharmaceutical companies,
including Novavax, have historically been highly volatile, and it is likely
that the market price of Novavax Common Stock will continue to be highly
volatile. Since its listing on the American Stock Exchange (the "AMEX"), the
closing price of the Novavax Common Stock on the AMEX has ranged between a low
of $2.88 per share and a high of $8.25 per share. Announcements of
technological innovations or new commercial products by Novavax or its
competitors, regulatory developments, disputes concerning patent or proprietary
rights, publicity regarding actual or potential medical results relating to
products under development by Novavax or its competitors, public concern as to
the safety of Novavax's products, and economic and other external factors
unrelated to Novavax's business or operations, as well as period-to-period
fluctuations in financial results, may have a significant impact on the market
price of Novavax Common Stock.

         Novavax Common Stock is currently traded on the AMEX. A failure to
continue to meet the AMEX's maintenance requirements may result in a delisting
of the Novavax Common Stock.

                                       14


<PAGE>   18



In particular, Novavax may have difficulty maintaining the minimum market
capitalization requirements of the AMEX because such capitalization is
dependent on the price at which the shares of Novavax Common Stock trade from
time to time. The liquidity of delisted securities, which would probably trade
in the over-the-counter markets, may be impaired, not only in the number of
shares that could be bought or sold, but also through delays in the timing of
transactions, reductions in security analysts' and the news media's coverage of
Novavax, and lower prices than might otherwise be attained.

         Novavax has never paid cash dividends on the Novavax Common Stock and
does not anticipate paying any cash dividends in the foreseeable future.

         Dilution. As of December 31, 1996, there were outstanding stock
options for an aggregate of 3,672,861 shares of Novavax Common Stock at a
weighted average exercise price of $3.11 per share. In addition, as of December
31, 1996, there were outstanding warrants to purchase an aggregate of 1,300,000
shares of Novavax Common Stock at a weighted average exercise price of $6.80
per share. Investors purchasing shares of Novavax Common Stock in this offering
may incur dilution to the extent that the outstanding options are exercised.

         Potential Conflicts of Interest.  Dr. Hager, a director and Chairman 
of the Board and former Chief Executive Officer of Novavax, serves as a 
director and as Chairman of the Board and Chief Executive Officer of IGI.  
Mr. Gallo serves as a director and as President and Chief Operating Officer of 
IGI, and as a director of Novavax.  In addition, Dr. Hager's wife, Jane E. 
Hager, serves as a director of both Novavax and IGI.  Dr. Hager, Mr. Gallo and 
Mrs. Hager constitute three out of the nine members of the Novavax Board of 
Directors.  The presence of individuals serving in decision-making roles in 
both companies may affect the ability of each company to receive the best arms'
length result in transactions between the two companies as well as the ability 
of the officers and directors to act in the best interests of both companies.  

         Novavax and IGI have entered into a variety of intercompany
agreements, the terms of which were unilaterally established by IGI. Under a
Transition Services Agreement, IGI provided certain administrative services to
Novavax prior to June 30, 1996. In connection with the Distribution, IGI paid
Novavax $5,000,000 in return for a fully paid-up ten-year license entitling it
to the exclusive use of the Novavax Technologies in certain fields. IGI has the
option, exercisable in the last year of the ten-year term, to extend the
License Agreement for an additional ten-year period for $1,000,000. Novavax
retains the right to use its Novavax Technologies for all other applications,
including most human pharmaceuticals. Novavax has agreed in a Tax Matters
Agreement to use its best efforts not to engage in certain actions
("Post-Distribution Acts") which could render the Distribution taxable. 
If the Distribution is rendered taxable as a result of a Post-Distribution Act, 
then (x) the corporate level taxable gain would be recognized by the 
consolidated group of which IGI is the parent, (y) both IGI, as parent of that 
group, and Novavax as a former member of that group, would be severally liable 
for the corporate level tax on such gain and (z) each holder of IGI Common 
Stock who received shares of Novavax Common Stock in the Distribution would be 
treated as having received a taxable dividend.

         Anti-takeover Provisions. Novavax's Amended and Restated Certificate
of Incorporation (the "Certificate of Incorporation"), requires that any action
required or permitted to be taken by stockholders of Novavax must be effected
at a duly called annual or special meeting of stockholders and may not be
effected by any consent in writing, and will require reasonable advance notice
by a stockholder of a proposal or director nomination which such stockholder
desires to present at any annual or special meeting of stockholders. Special
meetings of stockholders may be called only by the Chief Executive Officer or,
if none, the President of Novavax or the Board of Directors. The Certificate of
Incorporation provides for a classified Board of Directors, and members of the
Board of Directors may be removed only for cause upon the affirmative vote of
holders of at least two-thirds of the shares of capital stock of Novavax

                                       15


<PAGE>   19



entitled to vote. Novavax's By-Laws provide that, during any time in which the
directors of Novavax who are affiliated with IGI shall constitute at least half
of the membership of the Novavax Board of Directors, any matter requiring
approval of the Novavax Board of Directors shall be subject to the approval of
not less than two-thirds of the directors.

         The Board of Directors also has the authority, without further action
by the stockholders, to fix the rights and preferences of, and issue shares of,
Preferred Stock. These provisions, and other provisions of Novavax's
Certificate of Incorporation and By-Laws, may have the effect of deterring
hostile takeovers or delaying or preventing changes in control or management of
Novavax, including transactions in which stockholders might otherwise receive a
premium for their shares over then current market prices. In addition, these
provisions may limit the ability of stockholders to approve transactions that
they may deem to be in their best interests.

                              SELLING STOCKHOLDER

         The following table sets forth certain information with respect to the
Selling Stockholder, including (i) the name of the Selling Stockholder, (ii)
the number of shares of Common Stock owned by the Selling Stockholder prior to
the offering and (iii) the maximum number of shares of such Common Stock to be
offered hereby. Because the Selling Stockholder may offer all or a portion or
none of the Common Stock offered pursuant to this Prospectus, no estimate can
be given as to the amount of Common Stock that will be held by the Selling
Stockholder upon termination of the offering. See "Plan of Distribution."

         The shares covered by this Prospectus are being acquired from the
Company by the Selling Stockholder pursuant to a Stock Purchase Agreement dated
as of February 10, 1997 (the "Purchase Agreement"). The shares are comprised of
(i) 1,200,000 shares (the "Shares") being acquired concurrently with the
effectiveness of the Registration Statement of which this Prospectus forms a
part (the "Registration Statement"), (ii) 600,000 shares which may be acquired
upon the exercise of a warrant to be granted concurrently with the
effectiveness of the Registration Statement (the "A Warrant"), and (iii)
600,000 shares which may be acquired upon the exercise of a warrant to be
granted concurrently with the effectiveness of the Registration Statement (the
"B Warrant"). The Shares, the A Warrant and the B Warrant were purchased from
the Company for an aggregate purchase price of $5,100,000 (the "Private
Placement"), the only significant condition to which is the effectiveness of
the Registration Statement of which this Prospectus forms a part. The exercise
price for the A Warrant is $6.00 per share and the exercise price for the B
Warrant is $8.00 per share. Each of the warrants has a three year term. The
offer and sale by the Company of the Common Stock and warrants pursuant to the
Purchase Agreement were made pursuant to an exemption from registration under
Section 4 (2) of the Securities Act.

         Mitchell J. Kelly, the general partner of the general partner of the
Selling Stockholder was elected a director of the Company on February 25, 1997.
The Company will pay a fee of $51,000 to the general partner of the Selling
Stockholder as a transaction fee in connection with the sale of the Shares and
the warrants pursuant to the Purchase Agreement. In addition, the Company has
agreed to reimburse the Selling Stockholder for out-of-pocket expenses incurred
in connection with the sale of the Shares and the warrants pursuant to the
Purchase Agreement up to a maximum of $10,000.


<TABLE>
<CAPTION>
                                    Number of Shares Beneficially    Maximum Number of
Name of Selling Stockholder         Owned Prior to Offering          Shares Being Offered
- ---------------------------         -----------------------------    --------------------
<S>                                        <C>                            <C>
Anaconda Opportunity Fund, L.P.            2,422,900                      2,400,000
</TABLE>



                                      16



<PAGE>   20


                                USE OF PROCEEDS

         The Company will not receive any proceeds from the sale of the Shares
by the Selling Stockholder.

                              PLAN OF DISTRIBUTION

         The Company has filed with the Commission the Registration Statement,
of which this Prospectus forms a part, with respect to the resale of the Shares
from time to time by the Selling Stockholder in open market or privately
negotiated transactions. The Company has agreed to keep the Registration
Statement effective until the earlier of (i) the date on which no Selling
Stockholder holds any of the shares of Common Stock offered hereby, (ii) the
date upon which all of the Shares are eligible for sale pursuant to Rule 144
and (iii) the date three years from the effective date of the Registration
Statement (or, in the case of Shares to be acquired upon exercise of the
warrants, the third anniversary of the date of issuance of such Shares, but in
any event not later than six years from the effective date of the Registration
Statement); provided, however, if Rule 144 is amended so that the longest
period that Rule 144 restricts the manner in which privately placed securities
may be sold is a period shorter than three years, then the period required by
this clause (iii) shall be reduced to such shorter period. The Company intends
to deregister any of the Shares not sold by the Selling Stockholder at the end
of such period.

         The Company has been advised that the Selling Stockholder may sell the
Shares at market prices prevailing at the time of sale, at prices related to
such prevailing market prices or at negotiated prices. The Selling Stockholder
may effect such transactions by selling the Shares to or through broker-dealers
and such broker-dealers may receive compensation in the form of discounts,
concessions or commissions from the Selling Stockholder or the purchasers of
the Shares for whom such broker-dealers may act as agent or to whom they sell
as principal, or both (which compensation to a particular broker-dealer might
be in excess of customary commissions). The Selling Stockholder will be
responsible for all brokerage commissions and other amounts payable with
respect to any sale of Shares with respect to such Selling Stockholder and any
legal, accounting or other expenses incurred.

         In order to comply with the securities laws of certain states, if
applicable, the Shares will be sold in such jurisdictions only through
registered or licensed brokers or dealers. In addition, in certain states the
Shares may not be sold unless they have been registered or qualified for sale
in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

         The Selling Stockholder and any broker-dealers who act in connection
with the sale of Shares hereunder may be deemed to be "underwriters," as such
term is defined in the Securities Act, and any commissions received by them or
profit on any resale of the Shares as principal might be deemed to be
underwriting discounts and commissions under the Securities Act.

         To the extent required, the type and number of Shares to be sold, the
purchase price and public offering price, the name or names of any agent,
dealer or underwriter, and any applicable commissions or discounts with respect
to a particular offering will be set forth in an accompanying Prospectus
Supplement to this Prospectus.

         Pursuant to the Purchase Agreement, the Company agreed to register the
shares under the Securities Act and to indemnify and hold the Selling
Stockholder harmless against certain liabilities, including certain liabilities
under the Securities Act, that could arise in connection with the sale by the
Selling Stockholder of the Shares. The Company has agreed to bear certain
expenses (other than selling commissions) in connection with the registration
and sale of the Shares being offered by the Selling Stockholder, estimated to
be $35,000.


                                      17


<PAGE>   21

                                 LEGAL MATTERS

         Certain legal matters with respect to the shares of Common Stock
offered hereby have been passed upon by White & McDermott, P.C., 65 William
Street, Suite 209, Wellesley, Massachusetts 02181. David A. White, a
shareholder of such firm, owns 10,100 shares of the Common Stock and is the
Secretary of the Company.

                                    EXPERTS

         The consolidated balance sheets as at December 31, 1995 and 1994, and
the related consolidated statements of operations, stockholders' equity
(deficit) and cash flows for each of the three years in the period ended
December 31, 1995, incorporated by reference into this Prospectus, have been
incorporated herein in reliance on the report of Coopers & Lybrand L.L.P.,
independent accountants, contained in the Company's Annual Report on Form 10-K
for the year ended December 31, 1995 given on the authority of that firm as
experts in accounting and auditing.

                                INDEMNIFICATION

         Article NINTH of the Company's Restated Certificate of Incorporation
provides that a director or officer of the Company (a) shall be indemnified by
the Company against all expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement incurred in connection with any litigation or
other legal proceeding (other than an action by or in the right of the Company)
brought against him by virtue of his position as a director or officer of the
Company if he acted in good faith and in a manner he reasonably believed to be
in, or not opposed to, the best interests of the Company, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful and (b) shall be indemnified by the Company against all
expenses (including attorneys' fees) and amounts paid in settlement incurred in
connection with any action by or in the right of the Company brought against
him by virtue of his position as a director or officer of the Company if he
acted in good faith and in a manner he reasonably believed to be in, or not
opposed to, the best interests of the Company, except that no indemnification
shall be made with respect to any matter as to which such person shall have
been adjudged to be liable to the Company, unless a court determines that,
despite such adjudication but in view of all of the circumstances, he is
entitled to indemnification of such expenses. Notwithstanding the foregoing, to
the extent that a director or officer has been successful, on the merits or
otherwise, including, without limitation, the dismissal of an action without
prejudice, he is required to be indemnified by the Company against all expenses
(including attorneys' fees) incurred in connection therewith. Expenses shall be
advanced to a director or officer at his request, provided that he undertakes
to repay the amount advanced if it is ultimately determined that he is not
entitled to indemnification for such expenses.

         Indemnification is required to be made unless the Company determines
that the applicable standard of conduct required for indemnification has not
been met. In the event of a determination by the Company that the director or
officer did not meet the applicable standard of conduct required for
indemnification, or if the Company fails to make an indemnification payment
within 60 days after such payment is claimed by such person, such person is
permitted to petition the court to make an independent determination as to
whether such person is entitled to indemnification. As a condition precedent to
the right of indemnification, the director or officer must give the Company
notice of the action for which indemnity is sought and the Company has the
right to participate in such action or assume the defense thereof.

         Article NINTH of the Company's Restated Certificate of Incorporation
further provides that the indemnification provided therein is not exclusive,
and provides that in the event that the Delaware General Corporation Law is
amended to expand the indemnification permitted to

                                       18


<PAGE>   22

directors or officers the Company must indemnify those persons to the fullest
extent permitted by such law as so amended.

         Section 145 of the Delaware General Corporation Law provides that a
corporation has the power to indemnify a director, officer, employee or agent
of the corporation and certain other persons serving at the request of the
corporation in related capacities against amounts paid and expenses incurred in
connection with an action or proceeding to which he is or is threatened to be
made a party by reason of such position, if such person shall have acted in
good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, in any criminal proceeding, if such
person had no reasonable cause to believe his conduct was unlawful, provided
that, in the case of actions brought by or in the right of the corporation, no
indemnification shall be made with respect to any matter as to which such
person shall have been adjudged to be liable to the corporation unless and only
to the extent that the adjudicating court determines that such indemnification
is proper under the circumstances.

         The Company maintains insurance under which the insurers will
reimburse the Company for amounts that it has paid to its directors and
officers as indemnification for claims against such persons in their official
capacities. The insurance also covers such persons as to amounts paid by them
as a result of claims against them in their official capacities that are not
reimbursed by the Company. The insurance is subject to certain limitations and
exclusions.

         Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is therefore unenforceable.

                                      19


<PAGE>   23



         NO DEALER, SALESPERSON OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS PROSPECTUS AND, 
IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON AS
HAVING BEEN AUTHORIZED BY THE COMPANY OR ANY UNDERWRITER.  THIS PROSPECTUS
DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY 
OF THE SECURITIES OFFERED HEREBY IN ANY JURISDICTION TO ANY PERSON TO WHOM IT 
IS UNLAWFUL TO MAKE SUCH OFFER IN SUCH JURISDICTION.  NEITHER THE DELIVERY OF 
THIS PROSPECTUS NOR ANY SALE MADE HEREUNDER SHALL, UNDER ANY CIRCUMSTANCES, 
CREATE ANY IMPLICATION THAT THE INFORMATION HEREIN IS CORRECT AS OF ANY TIME 
SUBSEQUENT TO THE DATE HEREOF OR THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS 
OF THE COMPANY SINCE SUCH DATE.

                      ------------------------------------

                               TABLE OF CONTENTS


<TABLE>
<CAPTION>
                                                                        Page

<S>                                                                       <C>
Incorporation of Certain Documents by Reference........................... 3
Available Information..................................................... 3
Special Note Regarding Forward-Looking Statements......................... 4
The Company............................................................... 4
Recent Developments......................................................  8
Risk Factors.............................................................. 8
Selling Stockholder.......................................................16
Use of Proceeds...........................................................17
Plan of Distribution......................................................17
Legal Matters.............................................................18
Experts...................................................................18
Indemnification...........................................................18
</TABLE>


                      ------------------------------------

                                 NOVAVAX, INC.
                        2,400,000 SHARES OF COMMON STOCK
                                   PROSPECTUS





<PAGE>   24




                                    PART II
               INFORMATION NOT REQUIRED IN PROSPECTUS - Form S-3

Item 14.  Other Expenses of Issuance and Distribution.


<TABLE>
The expenses to be borne by the Company in connection with this offering are as
follows:

<S>                                                           <C>
SEC Registration Fee .....................................    $    4,590.52

AMEX Listing Fee .........................................        17,500.00

Legal Services and Expenses ..............................         8,500.00*

Accounting Services and Expenses .........................         3,500.00*

Miscellaneous expenses ...................................           909.48*
                                                                  ---------

                  Total    ...............................    $   35,000.00*
</TABLE>


- ------------------------
*Estimated

Item 15.  Indemnification of Directors and Officers.

         Article NINTH of the Company's Restated Certificate of Incorporation
provides that a director or officer of the Company (a) shall be indemnified by
the Company against all expenses (including attorneys' fees), judgments, fines
and amounts paid in settlement incurred in connection with any litigation or
other legal proceeding (other than an action by or in the right of the Company)
brought against him by virtue of his position as a director or officer of the
Company if he acted in good faith and in a manner he reasonably believed to be
in, or not opposed to, the best interests of the Company, and, with respect to
any criminal action or proceeding, had no reasonable cause to believe his
conduct was unlawful and (b) shall be indemnified by the Company against all
expenses (including attorneys' fees) and amounts paid in settlement incurred in
connection with any action by or in the right of the Company brought against
him by virtue of his position as a director or officer of the Company if he
acted in good faith and in a manner he reasonably believed to be in, or not
opposed to, the best interests of the Company, except that no indemnification
shall be made with respect to any matter as to which such person shall have
been adjudged to be liable to the Company, unless a court determines that,
despite such adjudication but in view of all of the circumstances, he is
entitled to indemnification of such expenses. Notwithstanding the foregoing, to
the extent that a director or officer has been successful, on the merits or
otherwise, including, without limitation, the dismissal of an action without
prejudice, he is required to be indemnified by the Company against all expenses
(including attorneys' fees) incurred in connection therewith. Expenses shall be
advanced to a director or officer at his request, provided that he undertakes
to repay the amount advanced if it is ultimately determined that he is not
entitled to indemnification for such expenses.

         Indemnification is required to be made unless the Company determines
that the applicable standard of conduct required for indemnification has not
been met. In the event of a determination by the Company that the director or
officer did not meet the applicable standard of conduct required for
indemnification, or if the Company fails to make an indemnification payment
within 60 days after such payment is claimed by such person, such person is
permitted to petition the court to make an independent determination as to
whether such person is entitled to indemnification. As a condition precedent to
the right of indemnification, the director or officer must give the Company
notice of the action for which indemnity is sought and the Company has the
right to participate in such action or assume the defense thereof.


<PAGE>   25



         Article NINTH of the Company's Restated Certificate of Incorporation
further provides that the indemnification prided therein is not exclusive, and
provides that in the event that the Delaware General Corporation Law is amended
to expand the indemnification permitted to directors or officers the Company
must indemnify those persons to the fullest extent permitted by such law as so
amended.

         Section 145 of the Delaware General Corporation Law provides that a
corporation has the power to indemnify a director, officer, employee or agent
of the corporation and certain other persons serving at the request of the
corporation in related capacities against amounts paid and expenses incurred in
connection with an action or proceeding to which he is or is threatened to be
made a party by reason of such position, if such person shall have acted in
good faith and in a manner he reasonably believed to be in or not opposed to
the best interests of the corporation, and, in any criminal proceeding, if such
person had no reasonable cause to believe his conduct was unlawful, provided
that, in the case of actions brought by or in the right of the corporation, no
indemnification shall be made with respect to any matter as to which such
person shall have been adjudged to be liable to the corporation unless and only
to the extent that the adjudicating court determines that such indemnification
is proper under the circumstances.

         The Company maintains insurance under which the insurers will
reimburse the Company for amounts that it has paid to its directors and
officers as indemnification for claims against such persons in their official
capacities. The insurance also covers such persons as to amounts paid by them
as a result of claims against them in their official capacities that are not
reimbursed by the Company. The insurance is subject to certain limitations and
exclusions.

         Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers or persons
controlling the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is therefore unenforceable.

Item 16.  Exhibits.

         See Exhibit Index, incorporated herein by reference.

Item 17.  Undertakings.

         (a)  The undersigned Registrant hereby undertakes:

         (1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this Registration Statement:

         (i) to include any prospectus required by Section 10(a)(3) of the 
Securities Act of 1933;

         (ii) to reflect in the prospectus any facts or events arising after
the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate,
represent a fundamental change in the information set forth in the Registration
Statement. Notwithstanding the foregoing, any increase or decrease in volume of
securities offered (if the total dollar value of securities offered would not
exceed that which was registered) and any deviation from the low or high end of
the estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the "Calculation of Registration Fee"
table in the effective Registration Statement.


<PAGE>   26



         (iii) to include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or any
material change to such information in the Registration Statement;

         provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not
apply if the information required to be included in a post-effective amendment
by those paragraphs is contained in periodic reports filed with or furnished to
the Commission by the Company pursuant to Sections 13 or 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
Registration Statement.

         (2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and
the offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.

         (3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination
of the offering.

         (b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to Section 15(d) of the
Securities Exchange Act of 1934) that is incorporated by reference in the
Registration Statement shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering thereof.

         (c) The undersigned Registrant hereby undertakes to deliver or cause
to be delivered with the prospectus, to each person to whom the prospectus is
sent or given, the latest annual report to security holders that is
incorporated by reference in the prospectus and furnished pursuant to and
meeting the requirements of Rule 14a-3 or Rule 14c-3 under the Securities
Exchange Act of 1934; and, where interim financial information required to be
presented by Article 3 of Regulation S-X are not set forth in the prospectus,
to deliver, or cause to be delivered to each person to whom the prospectus is
sent or given, the latest quarterly report that is specifically incorporated by
reference in the prospectus to provide such interim financial information.




<PAGE>   27




                                   SIGNATURES

          Pursuant to the requirements of the Securities Act of 1933, the
registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-3 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Columbia, Maryland, on February 25, 1997.

                                               NOVAVAX, INC.



                                               By:/s/ John O. Marsh, Jr.     
                                                  ----------------------------
                                                   John O. Marsh, Jr.,
                                                   Chief Executive Officer

                               POWER OF ATTORNEY

         We, the undersigned officers and directors of Novavax, Inc., hereby
severally constitute and appoint John O. Marsh, Jr., and David A. White, and
each of them singly, our true and lawful attorneys-in-fact, with full power to
them in any and all capacities, to sign any amendments to this Registration
Statement on Form S-3 (including Pre- and Post-Effective Amendments), and to
file the same, with exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact may do or cause to be done
by virtue hereof.

         Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.


<TABLE>
<CAPTION>
     Name                                             Title                           Date
     ----                                             -----                           ----


<S>                                   <C>                                       <C>
/s/ John O. Marsh, Jr.                 Chief Executive Officer and               February 25, 1997
- --------------------                   Director
    John O. Marsh, Jr.



/s/ Elaine T. Bennett                  Vice President (Principal Financial       February 25, 1997
- ---------------------                  and Accounting Officer)
    Elaine T. Bennett



/s/ Wayne A. Downing                   Director                                  February 25, 1997
- ---------------------
    Wayne A. Downing



/s/ John P. Gallo                      Director                                  February 25, 1997
- ---------------------
    John P. Gallo



/s/ Edward B. Hager                    Director                                  February 25, 1997
- ---------------------
    Edward B. Hager
</TABLE>




<PAGE>   28






<TABLE>
<S>                                    <C>                                      <C>
/s/ J. Michael Lazarus                 Director                                  February 25, 1997
- ------------------------
    J. Michael Lazarus



/s/ Ronald A. Schiavone                Director                                  February 25, 1997
- -----------------------
    Ronald A. Schiavone



/s/ Ronald H. Walker                   Director                                  February 25, 1997
- ---------------------
    Ronald H. Walker



/s/ Jane E. Hager                      Director                                  February 25, 1997
- ---------------------
    Jane E. Hager



/s/ Mitchell J. Kelly                  Director                                  February 25, 1997
- ---------------------
    Mitchell J. Kelly
</TABLE>




<PAGE>   29




                                 EXHIBIT INDEX

         The exhibits marked with an asterisk are filed herewith. The remainder
of the exhibits have heretofore been filed with the Commission and are
incorporated herein by reference.


<TABLE>
<CAPTION>
                                                                                                          Page
                                                                                                          ----
<S>                                                                                                        <C>
4.1      Restated Certificate of Incorporation of the Registrant.  (Incorporated by
reference to Exhibit 3.1 to the Registrant's Registration Statement File No. 0-26770
filed September 14, 1995 on Form 10 (the "Registration Statement").)

4.2      Restated By-laws of Registrant.  (Incorporated by reference to Exhibit 3.2
to the Registration Statement.)

4.3      Specimen stock certificate for shares of Common Stock, par value $.01 per
share.  (Incorporated by reference to Exhibit 4.1 to the Registration Statement.)

4.4*     Stock Purchase Agreement dated February 10, 1997 by and among
Novavax, Inc. and Anaconda Opportunity Fund, L.P.

4.5*     Form of Warrant to be issued to Anaconda Opportunity Fund, L.P.

5.1*     Opinion and Consent of White & McDermott, P.C.

23.1*    Consent of Coopers & Lybrand L.L.P., Independent Accountants.

23.2* Consent of White & McDermott, P.C. (Contained in its opinion filed as
Exhibit 5.1 to this Registration Statement.)

24.1*    Power of Attorney.  (Included in the signature pages hereto.)
</TABLE>






<PAGE>   1
                                                                    EXHIBIT 4.4


                                 NOVAVAX, INC.

                      STOCK AND WARRANT PURCHASE AGREEMENT

         This Stock and Warrant Purchase Agreement is made as of February 10,
1997, between Novavax, Inc., a Delaware corporation (the "Company"), and the
purchasers who are signatories hereto (the "Purchasers").

         WHEREAS, the Company wishes to sell and the Purchasers desire to 
purchase shares of the Company's Common Stock;

         NOW, THEREFORE, the parties hereto hereby agree as follows:

          1. Sale and Purchase of Shares. Subject to the terms and conditions
hereof, the Company will issue and sell to the Purchasers, and each Purchaser
will purchase from the Company the number of shares of Common Stock, A Warrants
and B Warrants set forth opposite such Purchaser's name on the signature page
hereto at the aggregate price set forth opposite such Purchaser's name on the
signature page hereto. The obligations of each Purchaser hereunder are several
and not joint and no Purchaser shall be obligated to purchase any number of
shares in excess of the number set forth opposite its name.

          The total amount of Common Stock sold to the Purchasers pursuant to
this Agreement is hereinafter referred to as the "Shares." The total amount of
warrants designated A Warrants sold to the Purchasers
 pursuant to this
Agreement is hereinafter referred to as the "A Warrants." The total amount of
warrants designated B Warrants sold to the Purchasers pursuant to this
Agreement is hereinafter referred to as the "B Warrants." The maximum number of
Shares sold to Purchasers will be 1,200,000, the maximum number of A Warrants
will be 600,000 and the maximum number of B Warrants will be 600,000.

          2.  Closing Date; Delivery.

              2.1 Closing Date. The closing of the purchase and sale of the
Shares hereunder (the "Closing") will be held at the offices of White &
McDermott, P.C., 65 William Street, Suite 209, Wellesley, MA, 02181, on the day
which is the later to occur of (i) the 30th day following the execution of this
Agreement and (ii) one business day after the last of the conditions to Closing
described in Section 6 have been satisfied or waived (the "Closing Date"), or
at such other time and place as the Company and the Purchasers may mutually
agree upon.

              2.2 Delivery. At the Closing, the Company will deliver to each
Purchaser (a) a certificate registered in such Purchaser's name representing
the shares of Common Stock purchased by such Purchaser, (b) a warrant in such
Purchaser's name representing the A Warrants purchased by such Purchaser, which
warrant shall be exercisable for a term of three years from the date of
issuance at an exercise price of $6.00 per share and shall be substantially in
the form of Exhibit B, (c) a warrant in such Purchaser's name representing the
B Warrants purchased by such Purchaser, which warrant shall be exercisable for
a term of three years from the date of issuance at an exercise price of $8.00
per share and shall be substantially in the form of Exhibit B and (d) an
opinion of White & McDermott, P.C. dated the Closing Date and substantially in
the form attached hereto as Exhibit A. At the Closing, each Purchaser will pay
to the Company by certified check or wire transfer the amount of the purchase
price set forth opposite the name of such Purchaser on the signature page of
such Purchaser attached hereto.

          3.  Definitions.  Unless the context otherwise requires, the terms 
defined in this Section 3 shall have the meanings herein specified for all 
purposes of this Agreement.



<PAGE>   2


          "A Warrants" is defined in Section 1.

          "Affiliate" shall have the meaning set forth in Rule 405 under the
Securities Act.

          "Agreement" means this agreement, including the exhibits hereto.

          "B Warrants" is defined in Section 1.

          "Certificate" means the Certificate of Incorporation of the Company
as filed with the Delaware Secretary of State as amended to the date hereof.

          "Closing" is defined in Section 2.1.

          "Closing Date" is defined in Section 2.1.

          "Commission" means the Securities and Exchange Commission.

          "Common Stock" means the shares of Common Stock, $.01 par value,
authorized by the Certificate, any additional shares of Common Stock which may
be authorized in the future by the Company, and any stock into which such
Common Stock may hereafter be changed, and shall also include capital stock of
any other class of the Company which is not preferred as to dividends or assets
over any other class of stock of the Company and which is not subject to
redemption.

          "Company Disclosure Documents" shall mean the Company SEC Reports,
the Company's press releases provided to the Purchasers prior to the execution
of this Agreement, the minutes of the meetings of the stockholders and
directors of the Company during calendar 1996 provided to the Purchasers prior
to the execution of this Agreement and the Disclosure Schedule attached hereto.

          "Company SEC Reports" shall mean the Company's (i) Annual Report on
Form 10-K for the fiscal year ended December 31, 1995, as filed with the
Commission, (ii) Quarterly Reports on Form 10-Q for the fiscal quarters ended
March 31, 1996, June 30, 1996 and September 30, 1996, each as filed with the
Commission, (iii) Forms 8-K filed with the Commission since January 1, 1996;
and (iv) the Company Proxy Statement dated April 5, 1996.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended
from time to time.

          "Proprietary Rights" shall have the meaning set forth in Section 4.12
of this Agreement.

          "Securities Act" means the Securities Act of 1933, as amended from
time to time.

          "Shares" is defined in Section 1.

          "Warrants" shall mean the A Warrants and the B Warrants.

          "Warrant Shares" shall mean the shares of the Common Stock of the
Company issuable in connection with the exercise of the Warrants.

          4.  Representations and Warranties by the Company.  The Company 
represents and warrants to the Purchasers as of the date hereof that:

              4.1  Organization and Standing.  The Company is a corporation 
duly organized and validly existing, and is in good standing, under the laws 
of the State of Delaware, and has the

                                       2


<PAGE>   3

requisite corporate power and authority to own, lease and operate its
properties and to carry on its business as now being conducted. Other than as
disclosed in the Company Disclosure Documents, the Company has no subsidiaries
or direct or indirect ownership interest in any firm, corporation, association
or business which either, individually or in the aggregate, are material to the
business of the Company. Each subsidiary of the Company is a corporation duly
organized and validly existing, and is in good standing, under the laws of the
jurisdiction of its incorporation, and has the requisite corporate power and
authority to own, lease and operate its properties and to carry on its business
as now being conducted; all of the issued and outstanding capital stock of each
such subsidiary has been duly authorized and validly issued, is fully paid and
non-assessable and is owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, charge,
encumbrance, claim or equity. The Company and each subsidiary are qualified to
do business and in good standing as a foreign corporation in every jurisdiction
in which its ownership of property or conduct of business requires it so to be
qualified and in which the failure to so qualify would have a material adverse
effect on the financial condition or business of the Company and its
subsidiaries taken as a whole.

              4.2  Changes.  Except as set forth in the Company Disclosure 
Documents, since September 30, 1996, neither the Company nor any of its 
subsidiaries has, to the extent material to the Company and its subsidiaries, 
taken as a whole, (i) incurred any debts, obligations or liabilities, absolute, 
accrued or contingent, whether due or to become due, other than in the ordinary 
course of business, (ii) mortgaged, pledged or subjected to lien, charge, 
security interest or other encumbrance any of its assets, tangible or 
intangible, (iii) waived any debt owed to the Company or its subsidiaries, (iv) 
satisfied or discharged any lien, claim or encumbrance or paid any obligation 
other than in the ordinary course of business, (v) declared or paid any 
dividends, or (vi) entered into any transaction other than in the usual and 
ordinary course of business. Other than as may be set forth in the Company 
Disclosure Documents, there has been no material adverse change or, to the 
knowledge of the Company, any development involving a prospective material 
adverse change in or affecting the financial condition or business, assets, 
properties, or business prospects of the Company and its subsidiaries, taken as 
a whole, since the date of the financial statements contained in the Company 
Disclosure Documents other than normal recurring operating losses.

              4.3 Litigation. Other than as described in the Company Disclosure
Documents, there are no legal actions, suits, arbitrations or other legal,
administrative or governmental proceedings pending or, to the best of the
Company's knowledge, threatened against the Company or any of its subsidiaries
or their respective properties, assets or business, and neither the Company nor
any of its officers is aware of any facts which might result in or form the
basis for any such action, suit or other proceeding, in each case which, if
adversely determined, would, individually or in the aggregate, have a material
adverse effect on the financial condition or business of the Company and its
subsidiaries taken as a whole. Neither the Company nor any of its subsidiaries
is in default
with respect to any judgment, order or decree of any court or any governmental
agency or instrumentality which default would have a material adverse effect on
the financial condition or business of the Company and its subsidiaries taken
as a whole.

              4.4 Compliance with Other Instruments. The business and
operations of the Company and its subsidiaries have been and are being
conducted in accordance with all applicable laws, rules and regulations of all
governmental authorities, except for such violations of applicable laws, rules
and regulations which would not, individually or in the aggregate, have a
material adverse effect on the financial condition or business of the Company
and its subsidiaries taken as a whole. Except for such matters which, either
individually or in the aggregate, would not have a material adverse effect on
the financial condition or business of the Company and its subsidiaries, taken
as a whole, the execution and delivery of, and the performance and compliance
with, this Agreement and the Warrants and the transactions contemplated hereby
or thereby, with or without the giving of notice or passage of time, will not
(i) result in any breach of, or constitute a default under, or result in the
imposition of any lien or encumbrance upon any asset or property of the Company
or any

                                       3


<PAGE>   4

subsidiary pursuant to any agreement or other instrument to which the Company
or any subsidiary is a party or by which it or any of its properties, assets or
rights is bound or affected, (ii) violate
the Certificate or Bylaws of the Company or any subsidiary, or any law, rule,
regulation, judgment, order or decree or (iii) except for the registration of
the Shares and the Warrant Shares under the Securities Act, the listing of the
Shares and the Warrant Shares on the American Stock Exchange, Inc. and such
consents, approvals, authorizations, registrations or qualifications as may be
required under the Exchange Act and applicable state securities laws in
connection with the purchase of the Shares and the Warrants by the Purchasers,
require any consent, approval, authorization or order of or filing with any
court or governmental agency or body. Neither the Company nor any subsidiary is
in violation of its Certificate or Bylaws nor in violation of, or in default
under, any lien, indenture, mortgage, lease, agreement, instrument, commitment
or arrangement, except for such defaults which would not, individually or in
the aggregate, have a material adverse effect on the financial condition or
business of the Company and its subsidiaries, taken as a whole. Neither the
Company nor any subsidiary is subject to any restriction which would prohibit
the Company or any subsidiary from entering into or performing its obligations
under this Agreement or the Warrants, except for such restrictions which would
not, individually or in the aggregate, have a material adverse effect on the
ability of the Company and its subsidiaries, taken as a whole, to perform their
obligations under this Agreement and the Warrants.

              4.5 Reports and Financial Statements. The Company has furnished
the Purchasers with true and complete copies of its Company SEC Reports
(without exhibits thereto). As of their respective filing dates the Company SEC
Reports were prepared in all material respects in accordance with the
requirements of the Securities Act or the Exchange Act, as the case may be, and
the rules and regulations of the Commission thereunder applicable to such
Company SEC Reports. The audited consolidated financial statements and
unaudited interim financial statements of the Company included in the Company
SEC Reports comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations
of the Commission with respect thereto, and the financial statements included
in the Company SEC Reports have been prepared in accordance with United States
generally accepted accounting principles applied on a consistent basis (except
as may be indicated therein or in the notes thereto) and fairly present the
financial position of the Company and its consolidated subsidiaries as at the
dates thereof and the results of its operations and cash flows for the periods
then ended subject, in the case of the unaudited interim financial statements,
to normal, nonmaterial year-end adjustments and any other adjustments described
in such financial statements.

              4.6 Shares. The Shares and the Warrant Shares, when issued and
paid for pursuant to the terms of this Agreement or the Warrants, as the case
may be, will be duly and validly authorized, issued and outstanding, fully
paid, nonassessable and free and clear of all pledges, liens, encumbrances and
restrictions (other than those arising from the private placement of the Shares
and the Warrant Shares).

              4.7 Securities Laws. Based in part upon the representations and
warranties of the Purchasers contained in Article 5 of this Agreement, the
offer, sale and issuance of the Shares and the Warrants as contemplated by this
Agreement are exempt from the registration requirements of the Securities Act,
and from the registration or qualifications requirements of the laws of any
applicable state or other U.S. jurisdiction.

              4.8 Capital Stock. At December 31, 1996, 10,660,710 shares of the
Company's Common Stock were issued and outstanding, no shares of the Company's
Preferred Stock were issued and outstanding, options to purchase 3,672,861
shares of the Company's Common Stock were issued and outstanding and warrants
to purchase 100,000 shares of the Company's Common Stock were issued and
outstanding. All of the outstanding shares of the Company's capital stock are
validly issued, fully paid and nonassessable and were issued in compliance with
all applicable federal and state securities laws. Except as set forth in this
Section 4.8 or the Company Disclosure

                                       4


<PAGE>   5

Documents, there are no outstanding subscriptions, options, warrants, calls,
contracts, demands, commitments, conversion rights or other agreements or
arrangements of any character or nature whatever under which the Company is or
may be obligated to issue its Common Stock, preferred stock or warrants or
options to purchase Common Stock or preferred stock. No holder of any security
of the Company is entitled to any preemptive or similar rights to purchase any
securities of the Company.

              4.9 Corporate Acts and Proceedings. This Agreement has been duly
authorized by the requisite corporate action and has been duly executed and
delivered by an authorized officer of the Company, and is a valid and binding
obligation of the Company, enforceable in accordance with its terms except as
such enforceability may be limited by bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting the enforcement of creditors'
rights generally and as to limitations on the enforcement of the remedy of
specific performance and other equitable remedies. The requisite corporate
action necessary to the authorization, issuance and delivery of the Shares, the
Warrants and the Warrant Shares has been taken by the Company. Upon execution
and delivery thereof by a duly authorized officer of the Company, the Warrants
will be valid and binding obligations of the Company, enforceable in accordance
with their terms except as such enforceability may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting the
enforcement of creditors' rights generally and as to limitations on the
enforcement of the remedy of specific performance and other equitable remedies.

              4.10 No Brokers or Finders. To the knowledge of the Company in
connection with this transaction, no person, firm or corporation has or will
have, as a result of any act or omission of the Company, any right, interest or
valid claim against the Purchasers for any commission, fee or other
compensation as a finder or broker in connection with the transactions
contemplated by this Agreement.

              4.11 Compliance with Environmental Laws. Except as disclosed in
the Company Disclosure Documents, neither the Company nor any subsidiary of the
Company is in violation in any material respect of any applicable statute, law
or regulation relating to the environment or occupational health and safety,
and to the best of the Company's knowledge, no expenditures material to the
Company and its subsidiaries, taken as a whole, are or will be required to
comply with any such existing statute, law or regulation. To the best knowledge
of the Company and its
subsidiaries, neither the Company nor any subsidiary of the Company has any
liability to any governmental authority or other third party arising under or
as a result of any such past or existing statute, law or regulation, which
liability would be material to the Company and its subsidiaries, taken as a
whole.

              4.12  Proprietary Rights.  The Company and its subsidiaries own 
or are licensed to use all patents, patent applications, inventions, 
trademarks, trade names, applications for registration of trademarks, service 
marks, service mark applications, copyrights, know-how, manufacturing 
processes, formulae, trade secrets, licenses and rights in any thereof and any 
other intangible property and assets (herein called the "Proprietary Rights") 
which are material to the businesses of the Company and its subsidiaries, 
taken as a whole, as now conducted and as proposed to be conducted. Except as 
disclosed in the Company Disclosure Documents, the Company does not have any 
knowledge of, and the Company has not given or received any notice of, any 
pending conflicts with or infringement of the rights of others with respect to 
any Proprietary Rights or with respect to any license of Proprietary Rights. 
Except as disclosed on the Company Disclosure Documents, no action, suit, 
arbitration, or legal, administrative or other proceeding, or investigation is 
pending, or, to the best knowledge of the Company, threatened, which involves 
any Proprietary Rights. Neither the Company nor any subsidiary of the Company 
is subject to any judgment, order, writ, injunction or decree of any court or 
any Federal, state, local, foreign or other governmental department, 
commission, board, bureau, agency or instrumentality, domestic or foreign, or 
any arbitrator, or has entered into or is a party to any contract which 
restricts or

                                       5


<PAGE>   6


impairs the use of any such Proprietary Rights in a manner which would have a
material adverse effect on the use of any of the Proprietary Rights. To the
best knowledge of the Company, no Proprietary Rights used by the Company or any
of its subsidiaries, and no services or products sold by the Company or any of
its subsidiaries, conflict with or infringe upon any proprietary rights owned
or licensed by any third party. Neither the Company nor any subsidiary of the
Company has received written notice of any pending conflict with or
infringement upon such third-party proprietary rights. Neither the Company nor
any subsidiary of the Company has entered into any consent, indemnification,
forbearance to sue or settlement agreement with respect to Proprietary Rights
other than in the ordinary course of business. No claims have been asserted by
any person with respect to the validity of the Company's or any of its
subsidiaries' ownership or right to use the Proprietary Rights and, to the best
knowledge of the Company, there is no reasonable basis for any such claim to be
successful. To the knowledge of the Company, the Proprietary Rights are valid
and enforceable. Except as disclosed on the Company Disclosure Documents, no
registration relating to the Proprietary Rights has lapsed, expired or been
abandoned or cancelled or is the subject of cancellation or other adversarial
proceedings, and all applications therefore are pending and are in good
standing. The Company and its subsidiaries have complied, in all material
respects, with their respective contractual obligations relating to the
protection of the Proprietary Rights used pursuant to licenses. To the best
knowledge of the Company, no person is infringing on or violating the
Proprietary Rights owned or used by the Company or any of its subsidiaries.

              4.13  Minimum Proceeds.  The gross proceeds to the Company from 
the sale of Shares and the Warrants hereunder, before all fees and expenses, is 
at least $5,100,000.

              4.14 Company Disclosure Documents. The Company Disclosure
Documents, when read as a whole, as updated by the press releases and the
Disclosure Schedule included therein and as of the date hereof, do not contain
any untrue statements of a material fact and do not omit to state a material
fact necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading.

              4.15  No Implied Representations.  All of the Company's 
representations and warranties are contained in this Agreement, and no other 
representations or warranties by the Company shall be implied.

              4.16 Filing of Reports. Since the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 1995, the Company has filed with
the Commission all reports and other material required to be filed by it
therewith pursuant to Section 13, 14 or 15(d) of the Exchange Act and the
Company is eligible to register the offer and resale of the Shares and the
Warrant Shares on a Registration Statement on Form S-3, or a successor form.

          5.  Representations and Warranties by the Purchasers; Restrictions on 
Transfer.

          Each Purchaser hereby severally represents and warrants to, and
covenants and agrees with, the Company, as of the Closing Date, as follows:

              5.1 Authorization. Purchaser has all requisite legal and
corporate or other power and capacity and has taken all requisite corporate or
other action to execute and deliver the Agreement, to purchase the Shares and
the Warrants to be purchased by it and to carry out and perform all of its
obligations under the Agreement. This Agreement constitutes the legal, valid
and binding obligation of Purchaser, enforceable in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and as to limitations on the enforcement of the
remedy of specific performance and other equitable remedies.

                                       6


<PAGE>   7


              5.2 Investment Experience. Purchaser is an "institutional
accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3) or (a)(7) or
a "Qualified Institutional Buyer" as defined in Rule 144A under the Securities
Act. Purchaser or its representative has reviewed the Company Disclosure
Documents. Purchaser is aware of the Company's business affairs and financial
condition and has had access to and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision to acquire the
Shares and the Warrants. Purchaser has such business and financial experience
as is required to give it the capacity to protect its own interests in
connection with the purchase of the Shares and the Warrants and is able to bear
the risks of an investment in the Shares and the Warrants.  Purchaser is not 
itself a "broker" or a "dealer" as defined in the Exchange Act and is not an 
"affiliate" of the Company as defined in the Securities Act.

              5.3  Investment Intent.  Purchaser is purchasing the Shares and 
the Warrants for its own account as principal, for investment purposes only, 
and not with a present view to or for resale, distribution or fractionalization 
thereof, in whole or in part, within the meaning of the Securities Act.  
Purchaser understands that its acquisition of the Shares and the Warrants has 
not been registered under the Securities Act or registered or qualified under 
any state securities law in reliance on specific exemptions therefrom, which 
exemptions may depend upon, among other things, the bona fide nature of 
Purchaser's investment intent as expressed herein.  Purchaser has, in 
connection with its decision to purchase the number of Shares and the Warrants 
set forth in this Agreement, relied solely upon the Company Disclosure 
Documents and the representations and warranties of the Company contained 
herein.  Purchaser will not, directly or indirectly, offer, sell, pledge, 
transfer or otherwise dispose of (or solicit any offers to buy, purchase or 
otherwise acquire or take a pledge of) any of the Shares or Warrants except in 
compliance with the Securities Act and the rules and regulations promulgated 
thereunder.

              5.4 Registration or Exemption Requirements. Purchaser further
acknowledges and understands that neither the Shares nor the Warrants may be
resold or otherwise transferred except in a transaction registered under the
Securities Act or unless an exemption from such registration is available.
Purchaser understands that the certificates evidencing the Shares and each
Warrant will be imprinted with a legend that prohibits the transfer of the
Shares or Warrants unless (a) such transaction is registered or such
registration is not required, and (b) if the transfer is pursuant to an
exemption from registration other than Rule 144 under the Securities Act, and
an opinion reasonably satisfactory to the Company of counsel reasonably
satisfactory to the Company is obtained to the effect that the transaction is
not required to be registered or is so exempt.

              5.5 Restriction on Sales, Short Sales and Hedging Transactions.
Purchaser represents and agrees that during the period from the date Purchaser
was first contacted with respect to the potential purchase of Shares and
Warrants through the date of the execution of the Agreement by Purchaser,
Purchaser did not, and from such date through the effectiveness of the
Registration Statement (as defined below), Purchaser will not, directly or
indirectly, execute or effect or cause to be executed or effected any short
sale, option or equity swap transactions in or with respect to the Common Stock
or any other derivative security transaction the purpose or effect of which is
to hedge or transfer to a third party all or any part of the risk of loss
associated with the ownership of the Shares and Warrants by the Purchaser.

              5.6 No Legal, Tax Or Investment Advice. Purchaser understands
that nothing in the Company Disclosure Documents, this Agreement or any other
materials presented to Purchaser in connection with the purchase and sale of
the Shares and the Warrants constitutes legal, tax or investment advice.
Purchaser has consulted such legal, tax and investment advisors as it, in its
sole discretion, has deemed necessary or appropriate in connection with its
purchase of the Shares and the Warrants.

                                       7


<PAGE>   8

          6.  Conditions to Closing.

              6.1 Registration Statement Effective. The Company shall have
prepared and filed with and have declared effective by, the Commission, a
Registration Statement which registers the offer and resale of the Shares and
the Warrant Shares.

              6.2 Opinion of Counsel. The Purchasers shall have received an
opinion of White & McDermott, P.C., dated the Closing Date, substantially in
the form attached hereto as Exhibit A.

              6.3 Secretary's Certificate. The Purchasers shall have received a
Secretary's Certificate, dated the Closing Date, certifying the Certificate and
Bylaws of the Company, the resolutions of the Board of Directors of the Company
and the signatures of the officers of the Company to execute this Agreement and
the other certificates and documents to be delivered by the Company in
connection with the transactions contemplated hereby.

              6.4  Transaction Fee.  The Company shall have paid to Anaconda 
Capital Management, L.L.C. a transaction fee in the amount of $51,000.

              6.5 Expenses. The Company shall have paid to counsel to the
Purchasers their fees and disbursements, if invoiced, and subject to the
limitations set forth in Section 9.6 hereof.

              6.6 No Material Adverse Change. There shall not have been any
Material Adverse Change between the date hereof and the Closing Date that has
not been cured to the reasonable satisfaction of the Purchasers. For purposes
of this Agreement, "Material Adverse Change" shall mean any event, condition,
development or occurrence causing or resulting in a material adverse effect on
the financial condition, product development or business of the Company, other
than (a) events, conditions, developments or occurrences of a general economic
or political nature (b) those related to financial markets or the trading price
of the Company's Common Stock or (c) those which generally affect biotechnology
or pharmaceutical companies and are not specifically related to the Company
alone.

          7.  Covenants

              7.1  Registration Requirements.

              (a) Promptly after the date of this Agreement, the Company shall
prepare and file a registration statement (the "Registration Statement") with
the Commission under the Securities Act to register the offer and resale of the
Shares and the Warrant Shares (the "Registrable Securities"), and shall use its
commercially reasonable efforts to secure the effectiveness of such
registration statement as soon as reasonably practicable thereafter.

              (b) The Company shall pay all Registration Expenses (as defined
below) in connection with any registration, qualification or compliance
hereunder and each Purchaser shall pay all Selling Expenses (as defined below)
and other expenses that are not Registration Expenses relating to the
Registrable Securities resold by such Purchaser. "Registration Expenses" shall
mean all expenses, except for Selling Expenses, incurred by the Company in 
complying with the registration provisions herein described, including, without
limitation, all registration, qualification and filing fees, printing expenses,
escrow fees, fees and disbursements of counsel for the Company, blue sky fees
and expenses and the expense of any special audits incident to or required by
any such registration. "Selling Expenses" shall mean all selling commissions,
underwriting fees and stock transfer taxes applicable to the Registrable
Securities and all fees and disbursements of counsel for any Purchaser.

                                       8


<PAGE>   9

              (c) In the case of the registration effected by the Company
pursuant to these registration provisions, the Company will use its best
efforts to: (i) keep such registration effective until the earliest of (A) the
third anniversary of the date such Registration Statement is declared effective
(or, in the case of Warrant Shares, the third anniversary of the date of
issuance of such Warrant Shares, but in any event not later than the sixth
anniversary of the date such Registration Statement is declared effective);
provided, however, if Rule 144 is amended so that the longest period that Rule
144 restricts the manner in which privately placed securities may be sold is a
period shorter than three years, then the period required by this clause (A)
shall be reduced to such shorter period, (B) such date as all of the
Registrable Securities have been resold and (C) such date as all Registrable
Securities may be sold pursuant to Rule 144 (or any successor rule); (ii)
except as provided in Section 7.1(f), prepare and file with the Commission such
amendments and supplements to the Registration Statement and the prospectus
used in connection with the Registration Statement as may be necessary to
comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by the Registration Statement; (iii)
furnish such number of prospectuses and other documents incident thereto,
including any amendment of or supplement to the prospectus, as Purchaser from
time to time may reasonably request; (iv) cause the Shares and the Warrant
Shares to be listed on the American Stock Exchange or any securities exchange
or quoted on each quotation service on which the Common Stock of the Company is
then listed or quoted; (v) provide a transfer agent and registrar for all
securities registered pursuant to the Registration Statement and a CUSIP number
for all such securities; and (vi) file the documents required of the Company
and otherwise use its best efforts to maintain requisite blue sky clearance in
(X) all U.S. jurisdictions in which any of the Shares or the Warrant Shares are
originally sold and (Y) all other states specified in writing by Purchaser,
provided, however, that, as to clause (Y), the Company shall not be required to
qualify to do business in any state in which it is not now so qualified or has
not so consented.

              (d) The Company shall furnish to each Purchaser upon request a
reasonable number of copies of a supplement to or an amendment of the
prospectus used in connection with the Registration Statement as may be
necessary to facilitate the public sale or other disposition of all or any of
the Registrable Securities held by Purchaser.

              (e) With a view to making available to Purchasers the benefits of
Rule 144 and any other rule or regulation of the Commission that may at any
time permit Purchaser to sell Registrable Securities to the public without
registration or pursuant to a registration statement on Form S-3, the Company
covenants and agrees to use its best efforts to: (i) make and keep public
information available as those terms are understood and defined in Rule 144
until the earlier of (A) the date on which the Shares may be sold pursuant to
Rule 144(k) (or any successor rule) or (B) such date as all of the Registrable
Securities shall have been resold; (ii) file with the Commission in a timely
manner all reports and other documents required of the Company under the
Securities Act and Exchange Act; and (iii) furnish to any Purchaser upon
request, as long as the Purchaser owns any Registrable Securities, (A) a
written statement by the Company that it has complied with the reporting
requirements of the Securities Act and the Exchange Act, (B) a copy of the most
recent annual or quarterly report of the Company, and (C) such other
information as may be reasonably requested in order to avail any Purchaser of
any rule or regulation of the Commission that permits the selling of any such
Registrable Securities without registration or pursuant to such registration
statement on Form S-3.

              (f) At any time after the effectiveness of the Registration
Statement, the Company may by notice to the Purchasers refuse to permit any
Purchaser to resell any Registrable Securities pursuant to the Registration
Statement for a period not to exceed 30 days; provided, however, that to
exercise this right, the Company must deliver a certificate in writing to each
Purchaser to the effect that a delay in such sale is necessary because a sale
pursuant to such Registration Statement in its then-current form would not be
in the best interests of the Company and its shareholders due to disclosure
obligations of the Company. Notwithstanding the foregoing, the Company shall
not

                                       9


<PAGE>   10

be entitled to exercise its right to block such sales more than three times 
during the effectiveness of the Registration Statement nor more than one (1) 
time in any four month period.  Each Purchaser hereby covenants and agrees that 
it will not sell any Registrable Securities pursuant to the Registration 
Statement during such blockage periods as set forth in this Section 7.1(f).

              7.2  Indemnification and Contribution.

              (a) The Company agrees to indemnify and hold harmless each
Purchaser from and against any losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) to which such Purchaser may become
subject (under the Securities Act or otherwise) insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) arise out
of, or are based upon, any untrue statement or alleged untrue statement of a
material fact or omission to state a material fact in the Registration
Statement on the effective date thereof, or arise out of any failure by the
Company to fulfill any undertaking included in the Registration Statement, and
the Company will, as incurred, reimburse such Purchaser for any legal or other
expenses reasonably incurred in investigating, defending or preparing to defend
any such action, proceeding or claim; provided, however, that the Company shall
not be liable in any such case to the extent that such loss, claim, damage or
liability arises out of, or is based upon (i) an untrue statement or omission
in such Registration Statement in reliance upon and in conformity with written
information furnished to the Company by or on behalf of such Purchaser
specifically for use in preparation of the Registration Statement or (ii) an
untrue statement or omission in any prospectus that is corrected in any
subsequent prospectus, or supplement or amendment thereto, that was delivered
to a Purchaser prior to the pertinent sale or sales by such Purchaser and not
delivered by such Purchaser to the entity to which it made such sale(s) prior
to such sale(s).

              (b) Each Purchaser, severally and not jointly, agrees to 
indemnify and hold harmless the Company from and against any losses, claims,
damages or liabilities (or actions or proceedings in respect thereof) to which 
the Company may become subject (under the Securities Act or otherwise) insofar 
as such losses, claims, damages or liabilities (or actions or proceedings in 
respect thereof) arise out of, or are based upon (i) an untrue statement or 
alleged untrue statement of a material fact or omission to state a material 
fact in the Registration Statement in reliance upon and in conformity with 
written information furnished to the Company by or on behalf of such Purchaser
specifically for use in preparation of the Registration Statement (provided,
however, that no Purchaser shall be liable in any such case for any untrue
statement or omission in any prospectus which statement has been corrected, in
writing, by such Purchaser and delivered to the Company at least 14 days before
the sale from which such loss occurred), or (ii) an untrue statement or
omission in any prospectus that is corrected in any subsequent prospectus or
supplement or amendment thereto, that was delivered to a Purchaser prior to the
pertinent sale or sales by such Purchaser and not delivered by such Purchaser
to the entity to which it made such sale(s) prior to such sale(s), and each
Purchaser, severally and not jointly, will, as incurred, reimburse the Company
for any legal or other expenses reasonably incurred in investigating, defending
or preparing to defend any such action, proceeding or claim. Notwithstanding
the foregoing, no Purchaser shall be liable, or required to indemnify the
Company, in the aggregate, for any amount in excess of the net proceeds
received by the Purchaser from the sale of the Shares or the Warrant Shares, as
the case may be, to which such loss, claim, damage or liability
relates.

              (c) Promptly after receipt by any indemnified person of a notice
of a claim or the beginning of any action in respect of which indemnity is to
be sought against an indemnifying person pursuant to this Section 7.2, such
indemnified person shall notify the indemnifying person in writing of such
claim or of the commencement of such action and, subject to the provisions
hereinafter stated, in case any such action shall be brought against an
indemnified person, the indemnifying person shall be entitled to participate
therein, and, to the extent that it shall wish, to assume the defense thereof,
with counsel reasonably satisfactory to the indemnified person. After notice
from the indemnifying person to such indemnified person of the indemnifying
person's

                                      10


<PAGE>   11

election to assume the defense thereof, the indemnifying person shall not be
liable to such indemnified person for any legal expenses subsequently incurred
by such indemnified person in connection with the defense thereof; provided,
however, that if there exists or shall exist a conflict of interest that would
make it inappropriate in the reasonable judgment of the indemnified person for
the same counsel to represent both the indemnified person and such indemnifying
person or any affiliate or associate thereof, the indemnified person shall be
entitled to retain its own counsel at the expense of such indemnifying person;
provided, further, that the indemnifying person shall not be obligated to
assume the expenses of more than one counsel to represent all indemnified
persons.

              (d) If the indemnification provided for in this Section 7.2 is
unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions or proceedings in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and
the Purchasers on the other in connection with the statements or omissions
which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The
relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Company on the one hand or a Purchaser on the other and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The Company and the Purchasers agree that
it would not be just and equitable if contribution pursuant to this subsection
(d) were determined by pro rata allocation (even if the Purchasers were treated
as one entity for such purpose) or by any other method of allocation which does
not take into account the equitable considerations referred to above in this
subsection (d). The amount paid or payable by an indemnified party as a result
of the losses, claims, damages or liabilities (or actions in respect thereof)
referred to above in this subsection (d) shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), no Purchaser shall be required to contribute
in the aggregate any amount in excess of the net proceeds received by the
Purchaser from the sale of the Shares or Warrant Shares, as the case may be, to
which such loss, claim, damage or liability relates. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The Purchaser's obligations in
this subsection (d) to contribute are several in proportion to their sales of
Shares or Warrant Shares, as the case may be, to which such loss relates and
not joint.

              (e) The obligations of the Company and the Purchasers under this
Section 7.2 shall be in addition to any liability which the Company and the
respective Purchasers may otherwise have and shall extend, upon the same terms
and conditions, to directors, officers, employees and agents of the Company and
the Purchasers and to each person, if any, who controls the Company or any
Purchaser within the meaning of the Securities Act and the Exchange Act.

          8.  Restrictions on Transferability of Shares and Warrants; 
Compliance with Securities Act.

              8.1 Restrictions on Transferability. Neither the Shares nor the
Warrants shall be transferable in the absence of registration under the
Securities Act or an exemption therefrom or in the absence of compliance with
any term of the Agreement.

                                      11


<PAGE>   12

              8.2 Restrictive Legend. Each certificate representing the Shares
and each Warrant shall bear substantially the following legend (in addition to
any legends required under applicable state securities laws):

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR 
          INVESTMENT PURPOSES ONLY AND HAVE NOT BEEN REGISTERED UNDER THE 
          SECURITIES ACT OF 1933, AS AMENDED.  THE SECURITIES MAY NOT BE SOLD 
          OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION 
          THEREFROM.

              8.3 Transfer of Shares and Warrants. Each Purchaser hereby
covenants with the Company not to make any sale of the Shares or Warrants
except either (a) a sale of Shares or Warrant Shares in accordance with the
Registration Statement, in which case the Purchaser covenants to comply with
the requirement of delivering a current prospectus, (b) a sale of Shares or
Warrant Shares in accordance with Rule 144, in which case the Purchaser
covenants to comply with Rule 144 and to deliver such additional certificates
and documents as the Company may reasonably request, or (c) subject to such
conditions as the Company in its sole discretion shall impose, in accordance
with another exemption from the registration requirements of the Securities
Act. The legend set forth in Section 8.2 will be removed from a certificate
representing Shares or the Warrant Shares, as the case may be, following and in
connection with any sale of Shares or Warrant Shares pursuant to subsection (a)
or (b) hereof but not in connection with any sale of Shares or Warrant Shares
pursuant to subsection (c) hereof.

          9.  Miscellaneous.

              9.1 Survival of Representations and Warranties. All
representations and warranties contained herein shall survive the execution and
delivery of this Agreement, any investigation at any time made by or on behalf
of the Purchaser, and the sale and purchase of the Shares and the Warrants and
payment therefor.

              9.2 Parties in Interest. All the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the respective successor and assigns of the parties hereto. Each successive
transferee of the Purchasers shall be deemed to be a Purchaser for the purposes
of Section 7 of this Agreement.

              9.3 Headings. The headings of the sections of this Agreement have
been inserted for convenience of reference only and do not constitute a part of
this Agreement.

              9.4 Choice of Law. It is the intention of the parties that the
internal laws of the State of Delaware, without regard to the body of law
controlling conflicts of law, shall govern the validity of this Agreement, the
construction of its terms and the interpretation of the rights and duties of
the parties set forth herein.

              9.5 Counterparts. This Agreement may be executed concurrently in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

              9.6  Expenses.  The Company agrees to pay the fees and 
disbursements of counsel to the Purchasers, if invoiced, in an amount not to 
exceed $10,000.

                  [Remainder of page intentionally left blank]

                                      12


<PAGE>   13

          IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed and delivered by their proper and duly authorized representatives as
of the day and year first above written.


<TABLE>
<S>                                                 <C>
Dated:  February 10, 1997                            NOVAVAX, INC.

                                                     By:
                                                        ------------------------

                                                     Title:
                                                           -----------------------

Number of Shares                                     ANACONDA OPPORTUNITY FUND, L.P.
Purchased:  1,200,000
            ---------
                                                     By:  Anaconda Capital, L.P., General Partner
Number of A Warrants
Purchased:  600,000
            -------

Number of B Warrants                                 By:
Purchased:  600,000                                     -----------------------------
            -------                                     General Partner

Aggregate Purchase Price:                            Address:  730 Fifth Avenue
$5,100,000                                                     ----------------
- ----------                                                     New York, NY  10019
                                                               -------------------
</TABLE>


                                      13


<PAGE>   14



                                   EXHIBIT A

          The Purchasers shall have received on the Closing Date an opinion,
dated the Closing Date, of White & McDermott, P.C., counsel for the Company, to
the effect that:

          The Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the State of Delaware.

          The Company has corporate power and authority to own, lease and
operate its properties and to conduct its business as described in the
Registration Statement and to enter into and perform its obligations under this
Agreement and the Warrants.

          The Shares and the Warrant Shares have been duly authorized for
issuance and sale to the Purchasers pursuant to this Agreement and, when issued
and delivered by the Company pursuant to this Agreement or the Warrants against
payment of the consideration set forth herein, will be validly issued and fully
paid and non-assessable; and the issuance of the Shares and the Warrant Shares
is not subject to preemptive or other rights to subscribe for or purchase
securities.

          This Agreement and each Warrant have been duly authorized, executed
and delivered by the Company and are enforceable in accordance with their terms
except as such enforceability may be limited by bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of
creditors' rights generally and as to limitations on the enforcement of the
remedy of specific performance and other equitable remedies.

          Except for such matters which, either individually or in the
aggregate, would not have a material adverse effect on the financial condition
or business of the Company and its subsidiaries, taken as a whole, the
execution, delivery and performance of this Agreement and the Warrants and the
consummation of the transactions in the manner contemplated herein and therein
and the compliance by the Company with its obligations hereunder and thereunder
will not (i) conflict with or constitute a breach of, or default under, or
result in the creation or imposition of any lien, charge or encumbrance upon
any property or assets of the Company or any of its subsidiaries pursuant to,
any contract, indenture, mortgage, loan agreement, note, deed, trust, lease,
sublease, voting trust, voting agreement or other instrument or agreement to
which the Company or any of its subsidiaries is a party or by which it or any
of them may be bound, or to which any of the property or assets of the Company
or any of its subsidiaries is subject, (ii) result in any violation of the
provisions of the charter or bylaws of the Company or any of its subsidiaries,
or any applicable statute, law, rule, regulation, ordinance, code, or any
applicable decision or order of any court or regulatory agency exercising
appropriate jurisdiction; and (iii) except for the registration of the Shares
and the Warrant Shares under the Securities Act and the listing of the Shares
and the Warrant Shares on the American Stock Exchange, Inc. (which has been 
done) and such consents, approvals, authorizations, registrations or 
qualifications as may be required under the Exchange Act and applicable state 
securities laws in connection with the purchase of the Shares or the Warrants 
by the Purchasers, no consents, approval, authorization or order of or filing 
with any court or governmental agency or body is required for the execution, 
delivery and performance of the Agreement or the Warrants by the Company and 
the consummation of the transactions contemplated by the Agreement or the 
Warrants.

          The Registration Statement has become effective under the Act, no
stop order suspending its effectiveness has been issued and no proceedings for
that purpose are pending before or, to the knowledge of such counsel,
contemplated by the Commission.

          The Registration Statement, the prospectus included therein, the
documents incorporated by reference and any supplement or amendment thereto
(except for financial statements as to which no opinion need be expressed)
comply as to form in all material respects with the Act, and nothing has come
to such counsel's attention that would lead it to believe that (except for
financial




<PAGE>   15

statements, as aforesaid) the Registration Statement and the prospectus
included therein at the time the Registration Statement became effective
contained any untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, or that the Prospectus, as amended or supplemented if
applicable (except for financial statements, as aforesaid), contained any
untrue statement of a material fact or omitted to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

          In giving such opinion and making such statement with respect to the
matters covered by the preceding paragraph such counsel may state that their
opinion and statement are based upon their participation in the preparation of
the Registration Statement and the prospectus included therein and any
amendments or supplements thereto and review and discussion of the contents
thereof, but are without independent check or verification of facts.




<PAGE>   1
                                                                    EXHIBIT 4.5

         THIS WARRANT AND ANY SHARES ACQUIRED UPON THE EXERCISE
         OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED, AND MAY NOT BE TRANSFERRED EXCEPT AS PERMITTED
         HEREIN AND PURSUANT TO (i) AN EFFECTIVE REGISTRATION STATEMENT UNDER
         THE SECURITIES ACT OF 1933, AS AMENDED, AND SUCH REGISTRATION OR
         QUALIFICATION AS MAY BE REQUIRED UNDER THE SECURITIES LAWS OF ANY
         STATE OR (ii) AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH
         SECURITIES LAWS.

                   WARRANT FOR THE PURCHASE OF COMMON STOCK

No. [A-1; B-1]                                                  600,000 Shares

         THIS CERTIFIES that, for receipt in hand of $50.00 and other value
received, ANACONDA OPPORTUNITY FUND, L.P., 730 Fifth Avenue, New York, New York
10019 (the "Holder"), or registered assigns, is entitled to subscribe for and
purchase from NOVAVAX, INC., a Delaware corporation (the "Company"), upon the
terms and conditions set forth herein, at any time or from time to time after
the date hereof, and before 5:00 p.m. on March __, 2001, eastern standard time
(the "Exercise Period"), 600,000 fully paid and nonassessable shares of the
Company's Common Stock, par value $.01 per share (the "Common Stock"), at a
price of $[6.00; 8.00] per share (the "Exercise Price"). This Warrant may be
sold, transferred, assigned, or hypothecated,
 in whole or in part, at any time
after the date hereof. As used herein the term "this Warrant" shall mean and
include this Warrant and any Warrant or Warrants hereafter issued as a
consequence of the exercise or transfer of this Warrant in whole or in part.

         The number of shares of Common Stock issuable at the Exercise Price
may be adjusted from time to time as hereinafter set forth.

          1.  Exercise of Warrant.

                  (a) Manner of Exercise. This Warrant may be exercised in
whole or in part at any time or from time to time during the Exercise Period by
the surrender of this Warrant (with the form of election to exercise attached
hereto duly executed) to the Company at its office at 8320 Guilford Road,
Columbia, MD 21046 or such other place as is designated in writing by the
Company, together with a certified or bank cashier's check payable to the order
of the Company in an amount equal to the Exercise Price multiplied by the
number of Warrant Shares for which this Warrant is being exercised.

                  (b)  Delivery of Stock Certificates, etc.  Upon each exercise 
of the Holder's rights to purchase the Warrant Shares granted pursuant to this 
Warrant, as reissued from time to time, the Holder shall be deemed to be the 
holder of record of the Warrant Shares issuable upon such exercise, 
notwithstanding that the transfer books of the Company shall then be closed or 
certificates representing such Warrant Shares shall not then have been actually 
delivered to the Holder. As soon as practicable after each such exercise of 
this Warrant, the Company shall issue and deliver to the Holder a certificate 
or certificates for the Warrant Shares issuable upon such exercise, registered 
in the name of the Holder or its designee. If this Warrant should be exercised 
in part only, the Company shall, upon surrender of this Warrant for 
cancellation, execute, and deliver a new Warrant evidencing the right of the 
Holder to purchase the balance of the Warrant Shares (or portions thereof) 
subject to purchase hereunder.

                  (c) Transfer of Warrants; Warrant Register.  Any Warrants 
issued upon the transfer or exercise in part of this Warrant (together with 
this Warrant, the "Warrants") shall be numbered


<PAGE>   2

and shall be registered in a warrant register as they are issued. The Company
shall be entitled to treat the registered holder of any Warrant on the Warrant
Register as the owner in fact thereof for all purposes and shall not be bound
to recognize any equitable or other claim to or interest in such Warrant on the
part of any other person, and shall not be liable for any registration or
transfer of such Warrants which are registered or to be registered in the name
of a fiduciary or the nominee of a fiduciary. Such Warrants shall be
transferable only on the books of the Company upon delivery thereof duly
endorsed by the Holder or by his duly authorized attorney or representative, or
accompanied by proper evidence of succession, assignment, or authority to
transfer. In all cases of transfer by an attorney, executor, administrator,
guardian, or other legal representative, duly authenticated evidence of his or
its authority shall be produced. Upon any registration of transfer, the Company
shall deliver a new Warrant or Warrants to the person entitled thereto. The
Warrants may be exchanged, at the option of the Holder thereof, for another
Warrant, or other Warrants of different denominations, of like tenor, and
representing in the aggregate the right to purchase a like number of Warrant
Shares (or portions thereof) upon surrender to the Company or its duly
authorized agent. Notwithstanding the foregoing, the Company shall have no
obligation to cause Warrants to be transferred on its books to any person if,
in the written opinion of counsel to the Company, such transfer does not comply
with the provisions of the Securities Act of 1933, as amended (the "Securities
Act"), and the rules and regulations thereunder.

          2.  Authorized Stock; Listing.  The Company shall at all times 
reserve and keep available out of its authorized and unissued Common Stock, 
solely for the purpose of providing for the exercise of the rights to purchase 
all Warrant Shares granted pursuant to this Warrant, such number of
shares of Common Stock as shall, from time to time, be sufficient therefor.  
The Company covenants that all shares of Common Stock issuable upon exercise of 
this Warrant, upon receipt by the Company of the purchase price therefor, shall 
be validly issued, fully paid, nonassessable, and free of preemptive or similar
contractual rights to subscribe for shares of Common Stock. The Company shall
list and maintain the listing of the Warrant Shares on the American Stock
Exchange (or other national securities exchange upon which the Common Stock is
listed).

          3.  Adjustments.

                  (a.) Stock Dividends, Splits, Combinations, etc. In case the
Company shall at any time after the date of this Warrant (i) declare a
dividend, or make a distribution, on the outstanding Common Stock in shares of
its capital stock, (ii) subdivide the outstanding Common Stock, (iii) combine
the outstanding Common Stock into a smaller number of shares, or (iv) issue any
shares of its capital stock by reclassification of the Common Stock (including
any such reclassification in connection with a consolidation or merger in which
the Company is the continuing corporation), then, in each case, the Exercise
Price, and the number and kind of shares of Common Stock receivable upon
exercise of this Warrant, in effect at the time of the record date for such
dividend or of the effective date of such subdivision, combination, or 
reclassification, shall be proportionately adjusted so that the Holder after 
such time shall be entitled to receive the aggregate number and kind of shares 
which if such Warrant had been exercised immediately prior to such time, it 
would have owned upon such exercise and been entitled to receive by virtue of 
such dividend, subdivision, combination or reclassification. Such adjustment 
shall be made successively whenever any event listed above shall occur.

                  (b) Sale of Stock, Options, Rights, etc. In case the Company
shall issue, or fix a record date for the issuance of, shares of Common Stock
or rights, options, or warrants entitling the holders thereof to subscribe for
or purchase Common Stock (or securities convertible into or exchangeable for
Common Stock) at a price per share (or having a conversion price per share, if
a security convertible into or exchangeable for Common Stock) less than the
Current Market Price, the Exercise Price shall be reduced to a price determined
by multiplying the then current Exercise Price by a fraction (i) numerator of 
which shall be (a) the number of shares of Common Stock outstanding immediately 
prior to such issue or sale plus (b) the number of shares of Common Stock

                                       2


<PAGE>   3

which the aggregate consideration received by the Company in connection with
such issuance or sale would purchase at the Current Market Price, and (ii) the
denominator of which shall be the number of shares of Common Stock outstanding 
immediately after such issuance or sale. Such adjustment shall become effective 
at the close of business on such date of issuance or record date; provided, 
however, that, to the extent the shares of Common Stock (or securities 
convertible into or exchangeable for shares of Common Stock) are not delivered, 
the Exercise Price shall be readjusted after the expiration of such rights, 
options, or warrants (but only with respect to Warrants exercised after such 
expiration), to the Exercise Price which would then be in effect had the 
adjustments made upon the issuance of such rights, options, or warrants been 
made upon the basis of delivery of only the number of shares of Common Stock 
(or securities convertible into or exchangeable for shares of Common Stock) 
actually issued. No readjustment shall have the effect of increasing the 
Exercise Price by an amount greater than the original adjustment. In case part 
or all of any subscription price may be paid in a form other than cash, the 
value of such consideration shall be as determined in good faith by the board 
of directors of the Company, whose determination shall be conclusive absent 
manifest error. Shares of Common Stock owned by or held for the account of the 
Company or any majority-owned subsidiary shall not be deemed outstanding for 
the purpose of any such computation.

                  In the case of the issuance of options to purchase or rights
to subscribe for Common Stock, securities by their terms convertible into or
exchangeable for Common Stock or options to purchase or rights to subscribe for
such convertible or exchangeable securities, the following provisions shall
apply:

                           (i)  the shares of Common Stock deliverable upon 
exercise of such options to purchase or rights to subscribe for Common Stock 
shall be deemed to have been issued at the time such options or rights were 
issued and for a consideration equal to the consideration, if any, received by 
the Company upon the issuance of such options or rights plus the minimum 
purchase price provided in such options or rights for the Common Stock covered 
thereby;

                           (ii)  the shares of Common Stock deliverable upon 
conversion of or in exchange for any such convertible or exchangeable 
securities or upon the exercise of options to purchase or rights to subscribe 
for such convertible or exchangeable securities and subsequent conversion or 
exchange thereof shall be deemed to have been issued at the time such 
securities were issued at the time such securities were issued or such options 
or rights were issued and for a consideration equal to the consideration, if 
any, received by the Company for any such securities and related options or 
rights (excluding any cash received on account of accrued interest or accrued 
dividends), plus the additional consideration, if any, to be received by the 
Company upon the conversion or exchange of such securities or the exercise of 
any related options or rights;

                           (iii)  in the event of any increase in the 
consideration payable to the Company upon exercise of such options or rights or 
upon conversion of or in exchange for such convertible or exchangeable 
securities, including, but not limited to, a change resulting from any 
antidilution provisions thereof, the Exercise Price with respect to the 
adjustment which was made upon the issuance of such options, rights or 
securities, and any subsequent adjustments based thereon, shall be recomputed 
to reflect such change, but no further adjustment shall be made for the actual 
issuance of Common Stock or any payment of such consideration upon the exercise 
of any such options or rights or the conversion or exchange of such securities.

                  (c) Extraordinary Dividends. In case the Company shall
distribute to all holders of Common Stock (including any such distribution made
to the stockholders of the Company in connection with a consolidation or merger
in which the Company is the continuing corporation) evidences of its
indebtedness or assets (other than dividends payable in shares of Common
Stock), or subscription rights, options, or warrants or convertible or
exchangeable securities containing the right to subscribe for or purchase
shares of Common Stock (excluding those referred to in

                                       3


<PAGE>   4



paragraph 3(b) hereof), then, in each case, the Exercise Price shall be
adjusted by multiplying the Exercise Price in effect immediately prior to the
record date for the determination of stockholders entitled to receive such 
distribution by a fraction, the numerator of which shall be the current Exercise
Price per share of Common Stock on such record date, less the fair market value 
(as determined in good faith by the board of directors of the Company, whose 
determination shall be conclusive absent manifest error) of the portion of the 
evidences of indebtedness or assets so to be distributed, or of such 
subscription rights, options, or warrants or convertible or exchangeable 
securities containing the right to subscribe for or purchase shares of Common 
Stock, applicable to one share, and the denominator of which shall be such 
current Exercise Price per share of Common Stock. Such adjustment shall be made 
whenever any such distribution is made, and shall become effective on the date 
of such distribution retroactive to the record date for the determination of 
stockholders entitled to receive such distribution.

                  (d) Current Market Price. For the purpose of any computation
under this paragraph 3, Current Market Price, per share of Common Stock on any
date shall be deemed to be the average daily closing price for the ten trading
days immediately preceding such day. The closing price for any day shall be the
last reported sales price regular way or, in case no such reported sale takes
place on such day, the closing bid price regular way, in either case on the
principal national securities exchange (including the NASDAQ National Market
System) on which the Common Stock is listed or admitted to trading or, if the
Common Stock is not listed or admitted to trading on any national securities
exchange, the highest reported bid price as furnished by the National
Association of Securities Dealers, Inc. through NASDAQ or a similar
organization if NASDAQ is no longer reporting such information. If on any such
date the Common Stock is not quoted by any such organization, the fair value of
a share of Common Stock on such date, as determined in good faith by the board
of directors of the Company, whose determination shall be conclusive absent
manifest error, shall be used.

                  (e) De Minimis Exception. No adjustment in the Exercise Price
shall be required if such adjustment is less than $.05; provided, however, that
any adjustments which by reason of this paragraph 3 are not required to be made
shall be carried forward and taken into account in any subsequent adjustment.
All calculations under this paragraph 3 shall be made to the nearest cent or to
the nearest one-thousandth of a share, as the case may be.

                  (f) Date of Issuance. In any case in which this paragraph 3
shall require that an adjustment in the Exercise Price be made effective as of
a record date for a specified event, the Company may elect to defer, until the
occurrence of such event, issuing to any Holder who exercised any Warrants
after such record date, the shares of Common Stock, if any, issuable upon such
exercise over and above the shares of Common Stock, if any, issuable upon such
exercise on the basis of the Exercise Price in effect prior to such adjustment.

                  (g) Adjustment to Number of Shares.  Upon each adjustment of 
the Exercise Price as a result of the calculations made in paragraphs 3(a), 3
(b), or 3(c) hereof, each Warrant outstanding prior to the making of the 
adjustment in the Exercise Price shall thereafter evidence the right to 
purchase, at the adjusted Exercise Price, that number of shares (calculated to 
the nearest thousandth) obtained by dividing (A) the product obtained by 
multiplying the number of shares purchasable upon exercise of a Warrant prior 
to adjustment of the number of shares by the Exercise Price in effect prior to 
adjustment of the Exercise Price by (B) the Exercise Price in effect after such 
adjustment of the Exercise Price.

                  (h) Notice of Adjustments. Whenever there shall be an
adjustment as provided in this paragraph 3, the Company shall promptly cause
written notice thereof to be sent by overnight courier, to the Holder, at its
principal office, which notice shall be accompanied by an officer's certificate
setting forth the number of Warrant Shares purchasable upon the exercise of
this Warrant and the Exercise Price after such adjustment and setting forth a
brief statement of the facts requiring

                                       4


<PAGE>   5



such adjustment and the computation thereof, which officer's certificate shall
be conclusive evidence of the correctness of any such adjustment absent any
error.

                  (i) No Fractional Shares. The Company shall not be required
to issue fractions of shares of Common Stock or other capital stock of the
Company upon the exercise of the Warrants. If any fraction of a share would be
issuable on the exercise of any Warrant (or specified portions thereof), the
Company shall purchase such fraction for an amount in cash equal to the same
fraction of the Current Market Price on the date of exercise of the Warrant.

                  (j) Employee Stock Options; Outstanding Options/Warrants. No
adjustment in the Exercise Price shall be required in the case of the issuance
of shares under or grant by the Company of options to employees, directors or
consultants of the Company under any stock option plan of the Company approved
by the stockholders of the Company, or the issuance of any and all shares of
Common Stock upon exercise of such options or upon the issuance of shares under
any options, warrants, or convertible securities outstanding as of the date
hereof.

          4.  Business Combinations.

                  (a) In case the Company, after the date hereof (i) shall 
consolidate with or merge into any other person and shall not be the continuing 
or surviving corporation of such consolidation or merger, or (ii) shall permit 
any other person to consolidate with or merge into the Company and the Company 
shall be the continuing or surviving person but, in connection with such  
consolidation or merger, the Common Stock or other securities of the Company 
which the Holder of this Warrant may receive upon exercise ("Other Securities") 
shall be changed into or exchanged for stock or other securities of any other 
person or cash or any other property, or (iii) shall transfer all or  
substantially all of its properties or assets to any other person, or (iv) 
shall effect a capital reorganization or reclassification of the Common Stock 
or Other Securities (other than a capital reorganization or reclassification 
resulting in the issue of additional shares of Common Stock for which 
adjustment in the Exercise Price is provided in paragraph 3(a) or 3(b)), then, 
and in the case of each such transaction, proper provision shall be made so 
that, upon the basis and the terms and in the manner provided in this Warrant, 
the Holder of this Warrant, upon the exercise hereof at any time after the 
consummation of such transaction, shall be entitled to receive (at the 
aggregate Exercise Price in effect at the time of such consummation for all 
Common Stock or Other Securities issuable upon such exercise immediately prior 
to such consummation), in lieu of the Common Stock or Other Securities 
issuable upon such exercise prior to such consummation, the highest amount of 
securities, cash or other property to which such Holder would actually have 
been entitled as a shareholder upon such consummation if such Holder had 
exercised the rights represented by this Warrant immediately prior thereto, 
subject to adjustments (subsequent to such consummation) as nearly equivalent 
as possible to the adjustments provided in paragraph 3; provided that if a 
purchase, tender or exchange offer shall have been made to and accepted by the 
holders of more than 50% of the outstanding shares of Common Stock, and if the 
Holder of this Warrant so designates in a notice given to the Company on or 
before the date immediately preceding the date of the consummation of such 
transaction, the Holder of this Warrant shall be entitled to receive the 
highest amount of securities, cash or other property to which such Holder 
would actually have been entitled as a shareholder if the Holder of this 
Warrant had exercised such Warrant prior to the expiration of such purchase, 
tender or exchange offer and accepted such offer, less the Exercise Price that 
would have been payable upon such exercise, subject to adjustments (from and 
after the consummation of such purchase, tender or exchange offer) as nearly 
equivalent as possible to the adjustments provided for in paragraph 3.

                  (b) In the event of any transaction described in clauses (i)
through (iv) of paragraph 4(a), each person (other than the Company) which may
be required to deliver any stock, securities, cash or property upon the
exercise of this Warrant as provided herein shall assume in writing (i) the
obligations of the Company under this Warrant (and if the Company shall survive
the

                                       5


<PAGE>   6

consummation of such transaction, such assumption shall be in addition to, and
shall not release the Company from, any continuing obligations of the Company
under this Warrant) and (ii) the obligation to deliver to such Holder such
shares of stock, securities, cash or property as, in accordance with the
foregoing provisions of this paragraph 4, such Holder may be entitled to
receive.

          5.  Notice.  In case at any time the Company shall propose:

                  (a) to pay any dividend or make any distribution on shares of
Common Stock in shares of Common Stock or make any other distribution to all
holders of Common Stock; or

                  (b) to issue any rights, warrants, or other securities to all
holders of Common Stock entitling them to purchase any additional shares of
Common Stock or any other rights, warrants, or other securities; or

                  (c) to effect any consolidation, merger, sale, reorganization 
or reclassification described in paragraph 4; or

                  (d) to effect any liquidation, dissolution, or winding-up of 
the Company; or

                  (e) to take any other action which would cause an adjustment 
to the Exercise Price;

then, and in any one or more of such cases, the Company shall give written
notice thereof, by overnight courier, to the Holder at the Holder's address as
it shall appear in the Warrant Register, mailed at least 20 business days prior
to (i) the date as of which the holders of record of shares of Common Stock to
be entitled to receive any such dividend, distribution, rights, warrants, or
other securities are to be determined, (ii) the date on which any such
consolidation, merger, sale, reorganization or reclassification, liquidation,
dissolution, or winding-up is expected to become effective, and the date as of
which it is expected that holders of record of shares of Common Stock shall be
entitled to exchange their shares or warrants for securities or other property,
if any, deliverable upon such reclassification, change of outstanding shares,
consolidation, merger, sale, lease, conveyance of property, liquidation,
dissolution, or winding-up; or (iii) the earlier of the date or record date in
respect of such action which would require an adjustment to the Exercise Price.

          6. Taxes. The issuance of any shares or warrants or other securities
upon the exercise of this Warrant, and the delivery of certificates or other
instruments representing such shares, warrants, or other securities, shall be
made without charge to the Holder for any tax or other charge in respect of
such issuance. The Company shall not, however, be required to pay any tax which
may be payable in respect of any transfer involved in the issue and delivery of
any certificate in a name other than that of the Holder and the Company shall
not be required to issue or deliver any such certificate unless and until the
person or persons requesting the issue thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.

          7.  Certain Rights.

                  (a) In case any event shall occur as to which the provisions
of paragraph 3 or 4 are not strictly applicable but the failure to make any
adjustment would not fairly protect the purchase rights represented by this
Warrant in accordance with the essential intent and principles of such
paragraphs, then in each such case, the Exercise Price and/or the amount of any
Common Stock, cash, securities or other assets to be delivered upon exercise of
this Warrant shall be adjusted on a basis consistent with the essential intent
and principles established in paragraph 3 or 4, as necessary to preserve the
purchase rights represented by this Warrant.

                                       6


<PAGE>   7


                  (b) The Company will not, by amendment of its certificate of
incorporation or through any consolidation, merger, reorganization, transfer of
assets, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of
this Warrant.

          8.  Legend.  The securities issued upon exercise of the Warrants 
shall be subject to a stop transfer order and the certificate or certificates 
evidencing any such securities shall bear the following legend:

          THESE SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
          1933, AS AMENDED, AND MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO (i)
          AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933,
          AS AMENDED, AND SUCH REGISTRATION OR QUALIFICATION AS MAY BE REQUIRED
          UNDER THE SECURITIES LAWS OF ANY STATE OR (ii) AN EXEMPTION FROM
          REGISTRATION UNDER SUCH ACT OR SUCH SECURITIES LAWS.

          9.  Miscellaneous.

                  (a) Upon receipt of evidence satisfactory to the Company of
the loss, theft, destruction, or mutilation of any Warrant (and upon surrender
of any Warrant if mutilated), and upon reimbursement of the Company's
reasonable incidental expenses, the Company shall execute and deliver to the
Holder thereof a new Warrant of like date, tenor, and denomination.

                  (b) The Holder of any Warrant shall not have, solely on
account of such status, any rights of a stockholder of the Company, either at
law or in equity, or to any notice of meetings of stockholders or of any other
proceedings of the Company, except as provided in this Warrant.

                  (c) This Warrant and any term hereof may be changed, waived,
discharged or terminated only by an instrument in writing signed by the party
against which enforcement of such change, waiver, discharge or termination is
sought.

                  (d) This Warrant shall be construed in accordance with the
laws of the State of Delaware, without giving effect to conflict of laws.

          IN WITNESS WHEREOF, the undersigned have set their hand to this
Warrant Agreement as of March __, 1997.


                                                  NOVAVAX, INC.



                                                  By:
                                                     ------------------------
                                                     Name:
                                                     Title:



- -----------------------
                                       7


<PAGE>   8



                               FORM OF ASSIGNMENT


(To be executed by the registered holder if such holder desires to transfer the 
attached Warrant.)
       FOR VALUE RECEIVED, __________________________________________________
hereby sells, assigns and transfers unto __________________________________ a 
Warrant to purchase ____ Warrant Shares of Novavax, Inc. (the "Company"), 
together with all right, title, and interest therein, and does hereby 
irrevocably constitute and appoint attorney to transfer such Warrant on the 
books of the Company, with full power of substitution.


Dated:
      ---------------------
                                                  Signature: 
                                                             ------------------
Signature Guaranteed:
                     -----------------------


                                     NOTICE

                  The signature on the foregoing Assignment must correspond to
the name as written upon the face of this Warrant in every particular, without
alteration or enlargement or any change whatsoever.

                                       8


<PAGE>   9


To:
   ------------------------

   ------------------------

   ------------------------

                              ELECTION TO EXERCISE

         The undersigned hereby exercises its or his rights to purchase Warrant
Shares covered by the within Warrant and tenders payment herewith in the amount
of $______ in accordance with the terms thereof, and requests that certificates 
for such securities be issued in the name of, and delivered to:


- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
     (Print Name, Address and Social Security or Tax Identification Number)

and, if such number of Warrant Shares shall not be all the Warrant Shares
covered by the within Warrant, that a new Warrant for the balance of the
Warrant Shares covered by the within Warrant be registered in the name of, and
delivered to, the undersigned at the address stated below.


Dated:                                     Name:
      -----------------                         ----------------------------
                                                        (Print)


Address:
        --------------------------------------------------------------------


                                             -------------------------------
                                            (Signature)






<PAGE>   1
                                                                    EXHIBIT 5.1

                            WHITE & MCDERMOTT, P.C.
                          65 William Street, Suite 209
                              Wellesley, MA 02181


                               February 28, 1997


Novavax, Inc.
8320 Guilford Road
Columbia, MD  21046

Gentlemen:

         We have assisted with the preparation of a Registration Statement on
Form S-3 (the "Registration Statement"), filed with the Securities and Exchange
Commission under the Securities Act of 1933, as amended, relating to the
registration of (i) 1,200,000 shares (the "Shares") of common stock, $.01 par
value (the "Common Stock"), of Novavax, Inc. (the "Company") held by a certain
stockholder of the Company and (ii) 1,200,000 shares (the "Warrant Shares")
which may be acquired upon the exercise of warrants (the "Warrants").

         We have examined the most recent Amendment to the Certificate of
Incorporation and the Restated Certificate of Incorporation, the By-laws of the
Company and all amendments thereto and have examined and relied on originals,
or copies certified to our satisfaction, of such records of meetings, written
actions in lieu of meetings, or resolutions adopted at meetings, of the
directors of the Company, and such other documents and instruments as in our
judgment are necessary or appropriate to enable us to render the opinions
expressed below.

         In our examination of the
 foregoing documents, we have assumed (i) the
genuineness of all signatures and the authenticity of all documents submitted
to us as originals, (ii) the conformity to original documents of all documents
submitted to us as certified or photostatic copies and (iii) the authenticity
of the originals of the latter documents.

         Based upon and subject to the foregoing, we are of the opinion that
(i) the Shares have been duly and validly authorized and issued and are fully
paid and non-assessable and (ii) the Warrant Shares have been duly authorized
and, upon exercise of the Warrants and payment for the Warrant Shares in
accordance with the terms of the Warrants, and the issuance of the Warrant
Shares by the Company thereunder, the Warrant Shares will be fully paid and
non-assessable.

         We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the use of our name under the caption "Legal
Matters" in the prospectus forming a part of the Registration Statement.

                                             Very truly yours,

                                             White & McDermott, P.C.



                                             By:  /s/ David A. White
                                                -----------------------
                                                      David A. White





<PAGE>   1


                                                                   EXHIBIT 23.1

                       CONSENT OF INDEPENDENT ACCOUNTANTS


         We consent to the incorporation by reference in this Registration
Statement on Form S-3 of our report dated March 29, 1996 on our audits of the
financial statements of Novavax, Inc. and subsidiaries as of December 31, 1995
and 1994 and the related consolidated statements of operations, stockholders'
equity (deficit) and cash flows for each of the three years in the period ended
December 31, 1995. We also consent to the reference to our Firm under the
caption "Experts."



                                                  /s/Coopers & Lybrand L.L.P.
                                                     Coopers & Lybrand L.L.P.





Rockville, Maryland
March 3, 1997