What happened
Shares of Novavax (NASDAQ: NVAX) Gained 7% on Thursday after the biotechnology company struck a development and supply alliance with SK Bioscience, a subsidiary of the South Korean giant SK Group.
So what
SK Bioscience will produce the antigen component of Novavax’s experimental COVID-19 vaccine, NVX-CoV2373. The two companies also reached an agreement with the South Korean Ministry of Health and Welfare to make the vaccine – if it is both safe and effective – available in South Korea and international markets.
Novavax stock rose on news of new deal deal for coronavirus. Image Source: Getty Images.
“We are proud to partner with SK Bioscience to fulfill our commitment to ensure NVX-CoV2373’s worldwide offering,” said Stanley Erck, CEO of Novavax in a press release. “SK Bioscience shares our sense of urgency to ensure broad and equal access for our COVID-19 vaccine candidate around the world.”
Well what
Early data from Novavax’s Phase 1/2 trial showed that its COVID-19 vaccine candidate produced a robust antibody response and was generally well tolerated. Those results apparently drew the interest of SK Group and the South Korean government. Other governments have also shown interest in NVX-CoV2373; Novavax has also recently achieved discounts Takeda Pharma and Serum Institute of India Private Limited (SIIPL) to help bring the vaccine to Japan and India, respectively, once it receives regulatory approval.
