Shares of Pfizer Inc. /zigman2/quotes/202877789/composite PFE +0.22% rose 1.6% in premarket trading Wednesday and BioNTech SE /zigman2/quotes/214419716/composite BNTX -0.43% gained 0.9%, after the drug makers said they will collaborate in developing a potential first mRNA-based shingles vaccine. The companies said they will leverage the antigen technology identified by Pfizer and BioNTech's mRNA platform technology, which were used to develop their COVID-19 vaccine. Clinical trials of the potential shingles vaccine are expected to start in the second half of 2022. Under terms of the collaboration agreement, Pfizer will make upfront payments of $225 million to BioNTech, including a $75 million cash payment and $150 million equity investment, while BioNTech will pay Pfizer $25 million for its antigen technology. BioNTech will be eligible to receive regulatory and sales milestone payments of up to $200 million. Pfizer's stock has rallied 46.6% over the past 12 months and BioNTech shares have soared 158.2%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.37% has advanced 28.6%.
Want to see how this story relates to your watchlist?
Just add items to create a watchlist now: