PARIS, June 23 (Reuters) - Healthcare companies Sanofi and Translate Bio said on Tuesday they would expand collaboration on developing vaccines, in a deal which will give Translate Bio $425 million in upfront payments.
The companies said they would expand their existing 2018 collaboration to develop ‘mRNA’ vaccines for infectious diseases.
Translate Bio will get an upfront payment of $425 million, consisting of $300 million in cash and a private placement common stock investment of $125 million at $25.59 per share, marking a premium of 57.6% to Translate Bio’s closing share price of $16.24 on June 22.
Translate Bio will also be eligible for potential future milestones and other payments of up to $1.9 billion, including $450 million of milestones under the 2018 agreement.
Reporting by Sudip Kar-Gupta; Editing by Kim Coghill