Shares of small-cap mRNA therapy company Translate Bio Inc (NASDAQ: TBIO) rose higher on Tuesday.
What happened: Translate Bio and Sanofi SA (NASDAQ: SNY) announced an expansion to its 2018 licensing and collaboration agreement to develop mRNA vaccines for infectious diseases.
The expanded collaboration will build on Translate Bio’s more than a decade of experience in mRNA research and development and Sanofi’s leadership in vaccine research and development, the companies said.
The finances: The agreement provides for Translate Bio to receive a total down payment of $ 425 million and possible future milestones and other payments of up to $ 1.9 billion, as well as tiered royalty payments based on worldwide sales. Sanofi will receive exclusive worldwide rights to vaccines against infectious diseases.
The down payment includes $ 300 million in cash and a private placement of $ 125 million in shares at $ 25.59 per share.
Of the potential milestones and other payments, some $ 360 million is anticipated in the coming years, including milestones in the development of the COVID-19 vaccine.
“The expansion of our collaboration with Sanofi Pasteur validates the progress we have made in developing mRNA vaccines for infectious diseases since our joint work began in 2018 and also speaks to the potential of our mRNA platform,” said the CEO of Translate Bio, Ronald Renaud. in a sentence.
The timeline: The companies, which are evaluating multiple candidates for the COVID-19 vaccine in animal studies to determine their immunogenicity and neutralizing antibodies in an attempt to select a leading candidate, plan to start a human study in the fourth quarter of 2020.
The companies are also promoting a candidate influenza mRNA vaccine through preclinical studies, with the clinical trial due to start in mid-2021.
TBIO Price Action: On the latest check, Translate Bio’s shares rose 43% to $ 23.22.
The week ahead in biotechnology: Karyopharm, Zogenix, Heron, Chiasma on the radar before the FDA decisions
The Daily Biotech Pulse: Sanofi streamlines COVID-19 vaccine timeline, apyx authorized for market expansion, positive reading from Miragen
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.