Sanofi and GSK receive more money for their COVID-19 vaccine

By: Miguel A. Rodriguez

09:45, 14 September 2020

The world is in a hurry to produce a vaccine against Coronavirus

Almost a week after it funded Moderna with $472 million, the US government made another investment, this time to Sanofi and GlaxoSmithKline

The two pharmaceutical companies will receive $2.1 billion to develop and deliver 100 million of the potential COVID-19 vaccine. The deal gives the US government the possibility to buy another 500 million doses at an undisclosed price. The current cost per patient is $42, and by the deal, each patient will receive two doses.

According to a joint statement released by the companies, more than half of the funding will be used to develop the vaccine and further the necessary processes, including the delivery of doses.

For the American government, this is the most significant payment made under "Operation Warp Speed," designed to accelerate access to treatments and vaccines against Coronavirus.

However, the Franco-British pair is at its second contract of this sort, after it made a deal with the British government to deliver 60 million vaccine doses. 

Currently, there are more than 150 vaccines under development, out of which 25 are in clinical trials, according to WHO (World Health Organization). The magnitude of this virus made the pharmaceutical companies do the impossible, time-wise speaking, as the development of a vaccine usually takes about a decade. The record for the fastest vaccine development has been set at around four years. The immunization against mumps received the green light in 1967. 

At the moment of writing, Sanofi stock price is trading lower by 0.04%, while GSK gained more than 1%.

Read all about the pharmaceutical companies on, and don’t forget to check-out our Corona Blend!


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.