BioNTech (BNTX) Stock Heads Up On Vaccine Collaboration Update

BioNTech BNTX Stock News

BioNTech (NASDAQ: BNTX) is heading up early on in the premarket hours this morning. The stock is trading on gains of more than 6% after announcing additional details with regard to the company’s collaboration with Pfizer (NYSE: PFE). Here’s what’s going on:

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BNTX Stock Heads Up On PFE Collaboration Details

In the release, BioNTech said that its collaboration with Pfizer, which was announced on March 17, 2020, is aimed at rapidly advancing multiple COVID-19 vaccine candidates into human testing.

The vaccine candidates persued under this collaboration were developed based on proprietary mRNA vaccine platforms developed by BNTX. Ultimately, the two companies are working toward ensuring rapid worldwide access to the vaccine, if approved.

Of course, the partnership leverages the broad expertise of PFE in vaccine R&D, regulatory capabilities, and its global manufacturing and distribution network.

In the release, the companies said that they will jointly conduct clinical trials for vaccine candidates. These trials will begin in the United States and Europe across multiple sites. The first of these clinical studies is expected to begin by the end of this month.

BNTX said that during the clinical development stage, it and its partners will provide clinical supply of the vaccine. Moreover, the two companies will work together to scale-up manufacturing capacity in order to provide a worldwide supply in response to the pandemic.

BioNTech and Pfizer also said that they will work together to commercialize the vaccine worldwide. Of course, these commercialization efforts will exclude China as BNTX already has an agreement in that region with Fosun Pharma.

As part of the agreement, Pfizer has agreed to make upfront payments of $185 million to BioNTech. This included a cash payment of $72 million and an equity investment of $113 million. Moreover, PFE has agreed to pay milestones of up to $563 million.

The two companies have agreed to share costs equally. This will be done with Pfizer paying 100% of development costs and BioNTech will repay half of these costs during the commercialization of the vaccine.

In a statement, Mikael Dolsten, CSO and President of Worldwide Research, Development and Medical at PFE, had the following to offer:

Combatting the COVID-19 pandemic will require unprecedented collaboration across the innovation ecosystem, with companies coming together to unite capabilities like never before. I am proud of Pfizer’s collaboration with BioNTech and have every confidence in our ability to harness the power of science – together – to bring forth a potential vaccine that the world needs as quickly as possible.

The above statement was followed up by Ugur Sahin, M.D., Co-Founder and CEO at BNTX. Here’s what he had to say:

We have already started working with Pfizer on our COVID-19 vaccine and are pleased to announce these further details of our ongoing collaboration, which reflects both companies’ strong commitment to move quickly to bring a safe and efficacious vaccine to patients worldwide.

This Is Big News

For BioNTech and its investors, this news is massive. First and foremost, we have known that the company is working on a vaccine for COVID-19 for some time now. However, with a partner like Pfizer on its side and plans to head into the clinic as early as this month, the potential here is incredible.

Furthermore, the partnership with PFE offers a level of financial stability for BNTX. After all, the company received $72 million in cash and an equith investment of more than $100 million from PFE as part of this collaboration. These funds will give the company a financial runway that’s hard to ignore.

With a vaccine candidate that’s already ready for the clinic, a partner like PFE on its team, and the financial runway to get through several catalysts ahead, BNTX is a stock that’s well worth paying attention to.

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