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(Alliance News) - GlaxoSmithKline and German biopharmaceutical company CureVac on Wednesday announced a new EUR150 million collaboration to jointly develop next-generation mRNA vaccines for Covid-19, with the potential for a "multi-valent approach" to address multiple emerging variants in one vaccine.
Already approved vaccines from Pfizer and Moderna use the same mRNA technology that give instructions for the body's cells to make a harmless piece of "spike proteins". The spike protein is found on the surface of the virus that causes Covid-19. This in turn makes the body trigger an immune response, offering immunity against any potential future infections. However, Pfizer and Moderna's jabs have to be administered in two doses.
Under the terms of the collaboration agreement, Glaxo will have exclusive rights to develop, manufacture, and commercialise the vaccine in all countries with the exception of Germany, Austria and Switzerland. It also will be the marketing authorisation holder for all countries other than Switzerland. Glaxo will make an upfront payment to CureVac of EUR75 million and a further milestone payment of EUR75 million, conditional on the achievement of specific milestones.
Further, Glaxo will also support the manufacture of up to 100 million doses of CureVac's first generation Covid-19 vaccine candidate CVnCoV in 2021.
The pair will contribute resources and expertise to research, develop, and manufacture a number of novel mRNA vaccine candidates, including multi-valent and monovalent approaches. Glaxo said the aim is to offer broader protection against a variety of different SARS-CoV2 variants, and to enable a quick response to new variants potentially emerging in the future.
The development programme will begin immediately, with the target of introducing the vaccine in 2022, subject to regulatory approval, Glaxo noted.
GlaxoSmithKline will report annual results at midday on Wednesday.
The FTSE 100 stock was up 0.5% in early trade.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.7% at 6,560.27
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Hang Seng: up 0.2% at 29,307.46
Nikkei 225: closed up 1.0% at 28,646.50
DJIA: closed up 475.57 points, or 1.6%, at 30,687.48
S&P 500: closed up 1.4% at 3,826.31
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GBP: up at USD1.3651 (USD1.3644)
EUR: flat at USD1.2031 (USD1.2029)
Gold: firm at USD1,837.84 per ounce (USD1,837.20)
Oil (Brent): firm at USD57.90 a barrel (USD57.58)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
0930 GMT UK CIPS-Markit services purchasing managers' index
1100 GMT Ireland unemployment
0955 CET Germany services PMI
1000 CET EU services PMI
1100 CET EU euro area inflation
1100 CET EU producer price index
0700 EST US MBA weekly mortgage applications survey
0815 EST US ADP national employment report
0945 EST US services PMI
1000 EST US ISM services PMI
1030 EST US EIA weekly petroleum status report
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A new subsidy system to provide support for businesses will "propel the UK to the forefront of innovation and help create the jobs of the future", Business Secretary Kwasi Kwarteng said. The government minister announced plans for a long-term replacement to the EU's state aid regime, signalling a break away from Brussels' rules post-Brexit. It is hoped the new scheme will allow the UK to be more dynamic in helping businesses, and that it will encourage job creation and growth. Local authorities, public bodies and the devolved administrations will be able to decide if they can issue subsidies to businesses, following UK-wide principles, under the plans.
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The services sector in Ireland in January suffered its steepest drop-off in activity since the early months of the coronavirus pandemic. The AIB Ireland services business activity index fell to 36.2 points in January from the neutral score of 50.1 in December. The almost 14-point decline in the purchasing managers' index score was third-largest on record, behind only those seen in March and April last year. IHS Markit said the difficult start to 2021 for Irish service providers was due to tightened lockdown restrictions to combat the second wave of Covid-19. More positively, it said, employment was only fractionally lower, and the expectations of survey respondents for future activity were only slightly lower than in December. "The impact of the latest lockdown was very evident in a sharp fall-off in new business as the tightening of restrictions suppressed demand," commented AIB Chief Economist Oliver Mangan. "The decline was not as severe for new export business as most other countries have not implemented the same extensive lockdown seen in Ireland and the UK."
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Italy's president is expected Wednesday to ask former head of the European Central Bank Mario Draghi to take over as prime minister following the collapse of the coalition government in the coronavirus-ravaged country. President Sergio Mattarella turned to the ex-central banker after Italy's ruling parties were unable to form a new government in the wake of a split last month that saw prime minister Giuseppe Conte resign. Draghi, an Italian economist credited with saving the eurozone at the height of the debt crisis in 2012, would take over at a crucial time, with his country still battling a raging pandemic. Conte's centre-left coalition had been in power since September 2019 but was fatally weakened last month when former premier Matteo Renzi withdrew his Italia Viva party in a row over the handling of the Covid-19 pandemic.
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Japan's service sector remained at contraction levels in January, due to sharper declines in order and new business inflows, data from au Jibun bank and IHS Markit showed. The seasonally adjusted Japan services business activity index dipped to 46.1 index points in January from 47.7 points in December, marking the sharpest fall since August, and the 12th consecutive month of a drop in business activity. Panel members noted that the resurgence in Covid-19 cases and the introduction of a state of emergency to allow new restrictions that are for curbing the spread of the virus caused a fall in new work, while international demand declined further.
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BROKER RATING CHANGES
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MORGAN STANLEY RAISES AVIVA TO 'OVERWEIGHT' ('EQUAL-WEIGHT') - TARGET 425 (376) PENCE
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SOCGEN RAISES PRUDENTIAL TO 'HOLD' (SELL) - PRICE TARGET 1,250 (1,100) PENCE
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BARCLAYS RAISES PERSIMMON TO 'OVERWEIGHT' (EQUALWEIGHT) - TARGET 3,000 (2,800) PENCE
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COMPANIES - FTSE 100
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Vodafone Group reported a fall in third-quarter revenue and said its Vantage Towers IPO remains on track. For the third quarter ended December 31, total revenue was down 4.7% to EUR11.20 billion from EUR11.75 billion in the third quarter of 2019. Service revenue was down 3.9% to EUR9.36 billion from EUR9.73 billion. Vodafone said service revenue rose 0.4% on an organic basis. Vodafone reaffirmed its financial 2021 guidance with adjusted earnings before interest, tax, depreciation and amortisation expected to be between EUR14.4 billion to EUR14.6 billion and free cash flow of at least EUR5 billion. In fixed broadband, Vodafone said there has been strong demand for high-speed connectivity, with over 1.1 million next-generation network broadband customers added in Europe year-to-date, taking its total NGN broadband base to 22.6 million. "I am pleased the group returned to service revenue growth in Q3 as a result of the continued commercial momentum across our business, including our largest market Germany. Our good trading performance underscores our confidence in the outlook for the full year. We have made further progress on our strategic priorities, including the IPO of Vantage Towers in early 2021, which remains firmly on track and will now include our 50% shareholding in the UK towers joint venture with Telefonica," said Chief Executive Officer Nick Read.
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Ferguson said it is in the process of registering with the US Securities & Exchange Commission to enable trading of its ordinary shares in the US. Ferguson anticipates that the additional US listing will become effective in early March and confirmed that it has applied to list its ordinary shares on the New York Stock Exchange. In addition, Ferguson will retain its premium listing on the London Stock Exchange and inclusion in the FTSE 100 index. As a result of the additional US Listing, Ferguson's current American depositary receipt scheme managed by JPMorgan Chase Bank will be terminated.
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Miner and commodities trader Glencore reported declines in annual copper, cobalt and coal output but increases in the two precious metals, gold and silver. Copper production fell by 8% in 2020 to 1.26 million tonnes from 1.37 million, though Glencore said copper output was steady on 2019 when excluding Mutanda, which is currently on care and maintenance. Cobalt production dropped 41% to 27,400 ounces from 46,300 ounces, and coal by 24% to 106.2 million tonnes from 139.5 million in 2019. However, gold output rose by 3% to 916,000 ounces in 2020 from 886,000 and silver by 2% to 32.8 million ounces from 32.0 million. "Our mining assets performed well in difficult circumstances during 2020," said Chief Executive Officer Ivan Glasenberg. "Various precautionary operating changes made in Q2 continued into the second half, with sustainable and safe working practices embedded for the pandemic era. Production picked up accordingly, with year-over-year increases in zinc, gold and silver production."
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COMPANIES - GLOBAL
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Siemens said it has had an "outstanding start" to financial 2021, as a result of improving conditions in some of its businesses and geographic regions. The Munich, Germany-based industrial firm reported net income in it financial first quarter ended December 31 rose to EUR1.5 billion from EUR1.1 billion a year prior. Group-wide, orders increased by 15% on a comparable basis, excluding currency translation and portfolio effects, and revenue was up 7%, with all Industrial Businesses contributing to growth, Siemens said. As a result of the improved performance, Siemens said it expects financial 2021 net income to be between EUR5.0 billion and EUR5.5 billion, above the previous expectation of moderate growth compared to EUR4.2 billion in 2020.
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Banco Santander reported an improved performance in 2020, thanks to growing client demand. The Spanish lender said customer volumes grew in all regions in 2020, resulting in lending increase of 5% year-on-year, while demand deposits rose by 14%, as the number of loyal customers climbed to 22.8 million, up 6% on the prior year. Customer revenue totalled EUR42.01 billion for the year, stable annually in constant currency, on the back of growth in South America and a resilient performance in North America. The bank's common equity tier 1 ratio increased to 12.34% – above its target range of between 11% and 12%.
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Wednesday's Shareholder Meetings
Codemasters Group Holdings PLC - GM re takeover by Electronic Arts
Daily Mail & General Trust PLC - AGM
DP Eurasia NV - EGM re director appointment, Euroclear Nederland
Imperial Brands PLC- AGM
Premier Miton Group PLC - AGM
Stobart Group Ltd - GM re name change to Esken Ltd
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By Tom Waite; thomaslwaite@alliancenews.com
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