CureVac stock popped in bullish volume Thursday after the company inked a collaboration deal with Bayer (BAYRY) for its coronavirus vaccine.
Under terms of the agreement, Bayer will support further development, supply and key territory operations for CureVac‘s (CVAC) experimental coronavirus vaccine. Both companies are based in Germany.
“We are very happy to join forces with Bayer, whose expertise and infrastructure will help us make our vaccine candidate (called) CVnCoV even more rapidly available to as many people as possible,” CureVac Chief Executive Franz-Werner Haas said in a written statement.
CureVac Stock Jumps Bullishly
CureVac is using a messenger RNA approach to its coronavirus vaccine. Similar to Pfizer‘s (PFE) vaccine with BioNTech (BNTX) and Moderna‘s (MRNA), these vaccines hijack the body’s process for protein creation.
CureVac will hold the marketing authorization for the coronavirus vaccine, while Bayer will support operations within the European Union and some additional markets. Bayer will have the option to become the marketing authorization holder in markets outside Europe.
The companies hope to supply hundreds of millions of doses around the world, pending approvals.
The news prodded CureVac stock to gap up. Shares broke out of a cup base with a buy point at 85.10 on Nov. 16. But on Dec. 31, CureVac stock fell as much as 9.2% below that entry. That triggered a sell rule when shares dive 7%-8% below a buy point.
CureVac stock started forming that cup base in August, a day after shares went public, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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