Sanofi and Translate Bio expand vaccine collaboration

[June 23, 2020]  By Sudip Kar-Gupta

PARIS (Reuters) - Sanofi and Translate Bio will expand their vaccines collaboration in a deal that could earn the U.S. biotech company more than $2 billion from the French drugmaker.

The companies, which are currently working on a COVID-19 vaccine candidate, said they would expand a partnership going back to 2018 to develop a wide range of mRNA vaccines for infectious diseases.

The mRNA (messenger ribonucleic acid) technology instructs cells in the body to make specific proteins that then produce an immune response to a disease.

Translate Bio will receive an upfront payment of $425 million, comprising $300 million in cash and a common stock investment of $125 million through a private placement at $25.59 per share. The placement price is at a premium of 57.6% to Translate Bio's $16.24 closing share price on Monday.

The deal will give Sanofi a stake of about 7.2% in Translate Bio and exclusive worldwide rights to develop, manufacture and sell infectious disease vaccines using the U.S. company's technology.

Translate Bio, meanwhile, will also be eligible for further potential milestones and other payments of up to $1.9 billion, the companies said.

Sanofi expects its mRNA COVID-19 vaccine candidate to enter clinical trials by the end of this year and, if successful, gain regulatory approval in the second half of 2021.

(Reporting by Sudip Kar-Gupta; Writing by Matthias Blamont; Editing by David Goodman)

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