Two competitors in the pharmaceutical industry are working together in the fight against SARS-CoV-2 and the disease that can cause it, COVID-19. On Friday, Pfizer (NYSE: PFE) announced that it had struck a deal with Gilead Sciences (NASDAQ: VALID) to produce the brake derivative of the latter. In May, the Food and Drug Administration (FDA) approved the Emergency Use Authorization (EUA) to treat severe cases of COVID-19.
Under the terms of the scheme, Pfizer will produce brake derivatives at a facility operating in Kansas. The company did not disclose the details of the deal, including its financial details.
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If brakes are to be produced quickly and efficiently enough to provide the world with adequate and timely delivery, Gilead partners like Pfizer will be needed. Compared to some of the larger pharmaceutical companies operating around the world, Gilead is rather limited in size and capacity.
In his press release on the deal, Pfizer quoted its CEO Albert Bourla as saying that “[t]enether, we are more powerful than alone. As one of the largest manufacturers of vaccines, biology and sterile injection sources, it is a privilege to offer our expertise and infrastructure to help combat this pandemic. “
Remdesivir, an antiviral medication, is a reimbursed product. Gilead originally intended it as a treatment for Ebola, although it was not found to be effective in clinical trials for that disease and was never approved for use.
This news seems to cheer investors in both companies. The two stocks both rose to levels slightly higher than the gains of the major indices Friday, with Pfizer up nearly 0.5% and Gilead up nearly 0.8% ahead.
