Akers Biosciences Inc (NASDAQ: AKER) is running for the top in the premarket hours this morning, already trading on gains of more than 60%. The gains come after the company announced that it has signed a licensing agreement surrounding the development of a coronavirus vaccine. Here’s what’s happening:
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AKER Stock Pops On Coronavirus Vaccine Licensing Agreement
In the release, the company said that it acquired a licensing agreement with Premas Biotech. Under the agreement, Akers Biosciences will in-license a novel coronavirus vaccine candidate under development by Premas.
Moreover, the company said that it will partner with Premas in an effort to seek FDA approval.
As part of the agreement, AKER said that it has agreed to acquire Cystron Biotech in exchange for $1 million in cash and 622,756 shares of common stock or common stock equivalents and a royalty on net sales. The company has also agreed to make future payments based on achieved milestones.
In a statement, Christopher Schreiber, Executive Chairman at AKER, had the following to offer:
Akers is a Nasdaq Listed company with a 30-year history in the development and manufacturing of rapid diagnostic tests. We have always been focused on solving global health challenges. After careful evaluation, partnering with Premas to address the global health pandemic of Coronavirus represents an important opportunity to leverage our expertise, leadership, and access to capital as a public company to end this threat. We are also evaluating the utilization of our facility with Premas for the development of this vaccine candidate as we move the product forward.
Why This News Is So Exciting
It’s no secret. COVID-19, or the novel coronavirus, is a very big deal. The virus has led to school closures, event cancellations and a dampened global economy. In the United States and other areas around the world, the virus is spreading like wild fire, creating fears that things will get worse before they get better.
While the pandemic continues to erupt and markets around the world continue to crash, demand for a vaccine is only growing. Importantly, the vaccine at the center of this licensing agreement is able to be scaled up quickly, making it possible for Akers Biosciences to quickly meet demand, not only domestically, but globally.
As such, with the announcement today, AKER has become a key competitor in the race to develop a viable vaccine for the novel coronavirus.
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