Novavax (NASDAQ: NVAX) shares surged Friday amid the news that the company had come to an agreement with the U.K. to deliver 60 million doses of its promising coronavirus vaccine. Shares rose 8% during premarket trading.
The American vaccine development company and the U.K. government are working together for a phase three clinical trial in order to test the efficiency of the vaccine within the U.K according to a statement made by Navavax. The trial vaccine, called NVX-CoV2373, will be tested on approximately 9,000 adults between 18 and 85 years old. However, Novavax has not revealed any financial information regarding the deal.
“We are honored to partner with the UK government to deliver a vaccine that could provide vital protection in the fight against the global health crisis,” Novavax CEO Stanley Erck said in a release Friday. “Our Phase 3 clinical trial in the UK will be a critical component to assess the efficacy of NVX-CoV2373, which in a Phase 1 trial has already demonstrated to be generally well-tolerated and to elicit robust antibody responses.”
Furthermore, the company claims it would collaborate with Fujifilm Diosynth Biotechnologies in order to manufacture the antigen element of the COVID-19 vaccine aspirant for the U.K.
With a deal already in place with the U.S government, Novavax will be paid USD1.6 Billion by the Trump administration’s Operation Warp Speed initiative to develop and manufacture the vaccine. The deal strives to provide 100 million doses by the start of 2021.
The vaccine contains synthesized bits of the external protein the coronavirus utilizes when infecting people. Thus, the company states, the dose produces neutralizing antibodies which analysts trust are crucial in creating immunity to the disease. The Vaccine has yet to cause any serious side-effects during trials.