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Share Price: 1,596.00
Bid: 1,595.50
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Change: -22.00 (-1.36%)
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UPDATE 4-EU pays $384 mln for Sanofi-GSK COVID vaccine as WHO scheme deadline looms

Fri, 18th Sep 2020 10:51

* Sanofi, GSK to supply up to 300 mln shots

* EU paid 324 million euros to secure supply

* Deal comes on deadline day to join WHO's COVAX scheme

* Many wealthy countries still to join
(Adds price paid for deal in second paragraph)

By Philip Blenkinsop and Matthias Blamont

BRUSSELS/PARIS, Sept 18 (Reuters) - The European Union has
agreed to buy a potential COVID-19 vaccine from Sanofi
and GSK in its second such deal to secure supplies, as a
deadline for joining the World Health Organization's (WHO)
vaccine purchase programme looms.

The deal will see the French and British drugmakers, which
have teamed up to manufacture a recombinant protein-based
vaccine they hope to get approved next year, provide the EU with
up to 300 million doses in exchange for a down payment of 324
million euros ($384 million).

Friday's agreement confirms an announcement made on July 31
by the two companies and follows an earlier deal between the EU
and AstraZeneca for the supply of up to 400 million
shots after a down payment of 336 million euros.

In return for the right to the doses, the European
Commission will finance part of the upfront costs faced by
vaccine producers. The vaccine doses themselves will be bought
by EU countries.

The latest deal comes on deadline day for members of the WHO
to join its COVAX scheme, which aims to buy COVID-19 vaccines
and ensure immunisations are fairly and efficiently distributed.

So far, 92 lower-income nations are seeking assistance via
COVAX, part of the WHO's ACT Accelerator to boost development of
vaccines, therapeutics and diagnostics to combat the pandemic.

Some 80 higher-income nations have expressed interest, but
many have yet to join as they scramble to secure supplies
separately.

France will provide funding for the initiative but will not
source shots through it, a health ministry official said on
Thursday, after Paris decided to be part of a joint scheme
arranged through the EU.

There is currently no internationally-approved vaccine for
COVID-19, the illness caused by the new coronavirus, which has
claimed more than 946,000 lives and derailed the world economy.

For Sanofi and GSK, the deal follows a $2.1 billion
agreement with the United States in July for 100 million doses,
with an option for Washington to purchase an additional 500
million, as well as a UK deal for 60 million doses.

Sanofi and GSK started clinical trials of their vaccine this
month and aim to reach the final testing stage by December.

The vaccine candidate uses the same recombinant
protein-based technology as one of Sanofi's seasonal influenza
vaccines. It will be coupled with an adjuvant, a substance that
acts as a booster to the vaccine, made by GSK.

The two companies are scaling up manufacturing to be ready
to produce up to one billion doses per year.

Sanofi is also working on another potential COVID-19 vaccine
with U.S. company Translate Bio, using a technology
called mRNA.
FACTBOX- The race for a coronavirus vaccine
FACTBOX-U.S., UK spend billions to take lead in securing
coronavirus vaccines
($1 = 0.8440 euros)

(Additional reporting by Francesco Guarascio, editing by Louise
Heavens)

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