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Summary
- GlaxoSmithKline and CureVac announced their partnership to co-produce mRNA-based COVID-19 vaccine candidates that would combat the new coronavirus mutants.
- Stocks of both pharma companies started showing movement in pre-market hours. CureVac’s stock jumped as much as 6.39 per cent, while the GSK stock was down almost 5 per cent.
- As per the partnership deal, both companies will invest US$ 180.7 million to codevelop the COVID-19 vaccine by 2022.
GlaxoSmithKline PLC (GSK:US, NYSE: GSK) announced on Wednesday, February 3, that it has entered a partnership with German pharma company CureVac (US:CVAC, NASDAQ: CVAC) to develop a vaccine for the COVID-19 mutant variants. As per the partnership deal, the two companies will invest US$ 180.7 million.
Both pharmaceutical firms are set to create a first-generation COVID-19 vaccine candidate, namely CVnCoV, which is presently in its Phase 2b and Phase 3 studies. GlaxoSmithKline has agreed to boost the vaccine production up to 100 million shots this year.
CureVac’s stocks jumped in pre-market on Wednesday, up 5.62 per cent. Meanwhile, GlaxoSmithKline’s shares were down by 5 per cent at the time of writing.
More About The Partnership
In July 2020, GlaxoSmithKline and CureVac jointly announced the signing of a strategic agreement for the manufacture of up to five mRNA-based vaccines and monoclonal antibodies. The collaboration came as most pharmaceutical firms were teaming up to build COVID-19 vaccines.
CureVac has also reportedly extended its ongoing partnership with Bayer AG to manufacture CVnCoV vaccine candidate in Germany.
GlaxoSmithKline and Sanofi co-developed a vaccine candidate last year but stopped its development due to laboratory mistakes.
GlaxoSmithKline stated that its partnership with CureVac that it will help develop an advanced mRNA-based vaccine to fight multiple new mutants of the coronavirus.
Both companies are projecting the availability of the vaccine in 2022, which further depends on health regulatory approvals.
Image Source: Kalkine Group @2020
Let us glance at these two pharma stocks’ performances:
GlaxoSmithKline stocks post a 10-day average trading volume of 4.57 million. The pharma stock has delivered a marginal return of nearly four per cent in the last three months. However, it has a noticeable return on equity of 48.90 per cent.
CureVac currently has a stock price of US$ 98.70, and nearly 186 million outstanding shares. The German pharma company’s stock has returned over 103 per cent in the last three months. Its 52-week high is US$ 149.67, and its 52-week low is US$ 36.28.
