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What happened
Actions of CureVac (NASDAQ: CVAC) jumped nearly 17% on Thursday after the company announced it had found a well-capitalized and famous partner to help bring its coronavirus vaccine to market.
So what
CureVac says it has signed a collaboration and services agreement with a global pharmaceutical powerhouse Bayer (OTC: BAYR.Y) regarding the former coronavirus vaccine candidate, CVnCoV.
Image source: Getty Images.
CureVac stated that under this agreement, the financial terms of which have not been made public, “CureVac will be the marketing authorization holder for the product, while Bayer will support CureVac with operations in European Union (EU) countries and in selected additional markets. ” Bayer also has options to become the marketing authorization holder outside of Europe, its partner added.
According to biotech, this agreement positions it to provide “hundreds of millions” of doses of the vaccine to the world. Last month, CVnCoV entered phase 3 clinical trials. As it is still under evaluation, its use has not been approved anywhere.
Now what
It is difficult to judge with precision how this could impact the fundamentals of CureVac, as we do not know the financial framework of the deal. And it almost goes without saying that there is no guarantee that CVnCoV will succeed in its current round of tests, let alone regulatory approval.
That said, whatever the terms of the company’s partnership with Bayer, it will be a real boon for CVnCoV to have such a strong international partner if it tests well and ends up being marketed. The current stock price pop was justified on this basis.
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