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GlaxoSmithKline Share Price Set to Gain on a Deal for COVID-19 Vaccines

Updated: 05 July 2020

Shares of GlaxoSmithKline (LON: GSK) are likely to make gains on Monday when the market opens after reports emerged that the pharma giant is nearing a deal with the UK government for COVID-19 vaccines.

Accordingly, GlaxoSmithKline and Sanofi are close to agreeing a deal with the government to supply 60 million doses of coronavirus vaccine. The deal is worth around 500 million pounds.

The deal is likely to be concluded this week. Companies are planning to start human trials in September, with a part of the payment dependent on the success of human trials.

It was reported last week that the first clinical trials of an Australia-made coronavirus vaccine have started.

GlaxoSmithKline (GSK) share price to open higher on covid-19 vaccine deal July 2020

GlaxoSmithKline share price closed at 1625.8p, or 1.44% in the red, on Friday. GSK stock price is trading around 25% off the 2-year lows set in March. The buyers are now likely to target a move to 1676p.