Shares in global life sciences company Emergent BioSolutions (NYSE:EBS) are climbing premarket after the company today announced that it has signed an agreement to provide contract development and manufacturing services for large-scale commercial drug substance manufacturing for AstraZeneca’s (NYSE:AZN) COVID-19 vaccine candidate.
Emergent said the agreement is worth around $174 million through to 2021 and comes after the two companies announced an $87 million contract in June for development services.
AstraZeneca’s CIVID-19 vaccine candidate, which is being developed by the University of Oxford is currently in clinical trials and is one of the front runners in the race to find a coronavirus vaccine.
The President and Chief Executive of Emergent Biosolutions, Robert G Kramer Sr, commented: “Emergent is driven by our desire to advance solutions that will make an impact on this pandemic.”
Emergent's president went on to say that the company is “encouraged by AstraZeneca’s investigational COVID-19 vaccine and look forward to supporting its continued progress.”
AstraZeneca has had a busy day so far on Monday after announcing a separate deal that will see them pay up to $6 billion for the global rights to a new cancer treatment.
Emergent’s share price has cautiously climbed higher in premarket trading, up 0.14% to $90 per share, which is surprising given the expansion to the AstraZeneca agreement.
AstraZeneca shares have also not seen much movement in premarket trading, up 0.57% at $56.12 after Friday’s close of $55.80.