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Translate Bio Up on Vaccine Agreement Expansion With Sanofi
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Translate Bio, Inc. (TBIO - Free Report) and Sanofi Pasteur, the global vaccines business unit of French pharma giant Sanofi (SNY - Free Report) , have agreed to expand their collaboration and license agreement related to development of mRNA vaccines for infectious diseases. The companies signed an agreement in 2018. Translate Bio will receive an upfront payment of $425 million and is eligible to receive up to $1.9 billion of potential milestones.
Translate Bio ended the March quarter with approximately $156 million in cash resources, down almost $34 million sequentially. With significantly boosted funds following the deal, the company should be able to smoothly continue with the development of its internal pipeline candidates.
Shares of Translate Bio surged almost 47% on Jun 23 following the news. In fact, the company’s shares have skyrocketed 193.2% so far this year against the industry’s decline of 4%.
Following the completion of the deal, the companies together will develop novel mRNA vaccines aimed at broadly addressing all current and future infectious diseases. Previously, the collaboration focused on developing vaccines for up to five infectious disease pathogens.
Per the current deal, Translate Bio will use its mRNA platform to discover, design and manufacture vaccine candidates while Sanofi will provide its deep vaccine expertise to advance vaccine candidates into and through further development. Moreover, Translate Bio will transfer technology and processes to allow Sanofi to develop and manufacture mRNA vaccines for infectious diseases.
The upfront payment for the deal includes $300 million in cash to be paid to Translate Bio by Sanofi along with another $125 million in equity investment in the former by the latter. Translate Bio’s potential milestones includes $450 million of milestones under the 2018 agreement. It is also eligible to receive tiered royalty payments based on worldwide sales of the developed vaccines. Moreover, Sanofi will bear all costs during the collaboration term.
Currently, the companies are evaluating multiple COVID-19 vaccine candidates in pre-clinical stage for immunogenicity and neutralizing antibody activity to support lead candidate selection. They plan to start a clinical study in the fourth quarter of 2020.
The companies are also developing an mRNA vaccine candidate against influenza in the pre-clinical stage with a clinical study expected to begin in mid-2021. Other mRNA vaccine development programs under this collaboration include another viral pathogen and a bacterial pathogen.
Apart from this collaboration, Translate Bio is focusing on using its mRNA technology to develop candidates to treat pulmonary diseases caused by insufficient protein production or where the reduction of proteins can modify diseases. The company’s lead mRNA therapeutic program is being developed as a treatment for cystic fibrosis in a phase I/II clinical study.
Zacks Rank and Stocks to Consider
Translate Bio currently has a Zacks Rank #3 (Hold).
Alpine’sloss per share estimates have narrowed from $1.38 to 4 cents for 2020 and from $1.77 to 23 cents for 2021 in the past 30 days. The company delivered a positive earnings surprise of 21.63%, on average, in the trailing four quarters.
Bellicum’s loss per share estimates have narrowed from $9.63 to $9.32 for 2020 and from $13.14 to $13.00 for 2021 in the past 30 days. The company delivered a positive earnings surprise of 10.28%, on average, in the trailing four quarters.
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Translate Bio Up on Vaccine Agreement Expansion With Sanofi
Translate Bio, Inc. (TBIO - Free Report) and Sanofi Pasteur, the global vaccines business unit of French pharma giant Sanofi (SNY - Free Report) , have agreed to expand their collaboration and license agreement related to development of mRNA vaccines for infectious diseases. The companies signed an agreement in 2018. Translate Bio will receive an upfront payment of $425 million and is eligible to receive up to $1.9 billion of potential milestones.
Translate Bio ended the March quarter with approximately $156 million in cash resources, down almost $34 million sequentially. With significantly boosted funds following the deal, the company should be able to smoothly continue with the development of its internal pipeline candidates.
Shares of Translate Bio surged almost 47% on Jun 23 following the news. In fact, the company’s shares have skyrocketed 193.2% so far this year against the industry’s decline of 4%.
Following the completion of the deal, the companies together will develop novel mRNA vaccines aimed at broadly addressing all current and future infectious diseases. Previously, the collaboration focused on developing vaccines for up to five infectious disease pathogens.
Per the current deal, Translate Bio will use its mRNA platform to discover, design and manufacture vaccine candidates while Sanofi will provide its deep vaccine expertise to advance vaccine candidates into and through further development. Moreover, Translate Bio will transfer technology and processes to allow Sanofi to develop and manufacture mRNA vaccines for infectious diseases.
The upfront payment for the deal includes $300 million in cash to be paid to Translate Bio by Sanofi along with another $125 million in equity investment in the former by the latter. Translate Bio’s potential milestones includes $450 million of milestones under the 2018 agreement. It is also eligible to receive tiered royalty payments based on worldwide sales of the developed vaccines. Moreover, Sanofi will bear all costs during the collaboration term.
Currently, the companies are evaluating multiple COVID-19 vaccine candidates in pre-clinical stage for immunogenicity and neutralizing antibody activity to support lead candidate selection. They plan to start a clinical study in the fourth quarter of 2020.
The companies are also developing an mRNA vaccine candidate against influenza in the pre-clinical stage with a clinical study expected to begin in mid-2021. Other mRNA vaccine development programs under this collaboration include another viral pathogen and a bacterial pathogen.
Apart from this collaboration, Translate Bio is focusing on using its mRNA technology to develop candidates to treat pulmonary diseases caused by insufficient protein production or where the reduction of proteins can modify diseases. The company’s lead mRNA therapeutic program is being developed as a treatment for cystic fibrosis in a phase I/II clinical study.
Zacks Rank and Stocks to Consider
Translate Bio currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Alpine Immune Sciences (ALPN - Free Report) and Bellicum Pharmaceuticals . Both stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alpine’sloss per share estimates have narrowed from $1.38 to 4 cents for 2020 and from $1.77 to 23 cents for 2021 in the past 30 days. The company delivered a positive earnings surprise of 21.63%, on average, in the trailing four quarters.
Bellicum’s loss per share estimates have narrowed from $9.63 to $9.32 for 2020 and from $13.14 to $13.00 for 2021 in the past 30 days. The company delivered a positive earnings surprise of 10.28%, on average, in the trailing four quarters.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>