What’s driving Translate Bi Inc (NASDAQ: TBIO) stock hot rally

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Translate Bi Inc (NASDAQ: TBIO) stock rose by whopping 46.98% on June 23rd, 2020 and continued its bullish momentum rising over 12.2% on 24th June, 2020 (as of 12:22 pm GMT-4 ; Source: Google finance). Sanofi SA plans to make further investment in U.S.-based Translate Bio Inc. to pursue new mRNA vaccines meant to broadly address the infectious diseases. Sanofi Pasteur division has plan to spend up to $1.9 billion for delivering a Covid-19 vaccine by mid-2021, using the messenger RNA technology of biotech startup Translate Bio. Translate Bio will receive upfront payments of $425 million, comprising of a $300 million cash payment and a $125 million investment in private placement common stock at $25.59 a share. In return Sanofi will get world-wide rights for the development and commercialization of the infectious disease vaccines using Translate Bio’s technology. Over the course of development and sales, TBIO could receive an aggregate of $1.9 billion from Sanofi for its vaccine against Covid and other infectious diseases like influenza. For TBIO, the expansion of the collaboration with Sanofi Pasteur validates the progress they have made and will also make them well positioned financially to continue to build upon the internal capabilities.

Meanwhile, both companies are currently evaluating multiple coronavirus vaccine candidates and the companies have the goal of initiating a first-in-human clinical trial in the fourth quarter of 2020. The speedy tools of mRNA have been already launched the clinical trials of Covid vaccines by Moderna and a team of BioNTech and Pfizer. Dozens of Covid vaccines are currently under development around the world, using mRNA technology as well as more conventional approaches. That may expected to reduce the market share of eventual suppliers but is need of time. Furthermore, the technologies like mRNA are getting serious commitments of resources from governments and the private sector, and these techniques could then be applied to other diseases.

Moreover, the two companies have been collaborating on vaccines since 2018 and first announced their Covid project in May. Translate Bio has already started clinical trials of another product, which is an inhaled treatment for cystic fibrosis that delivers genetic instructions for a protein that’s missing from CF patients’ lungs. The messenger RNA technology delivers genetic code to cells’ protein factories, that instructs them to make a particular protein. For a Covid vaccine, the instructions get cells to make part of the characteristic spike protein of the SARS-CoV-2 virus, which is anticipated to provoke the immune systems to muster up an army of protective antibodies.

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