Please ensure Javascript is enabled for purposes of website accessibility

GlaxoSmithKline Signs COVID-19 Collaboration Deal With Clover Biopharmaceuticals

By Cory Renauer - Feb 24, 2020 at 12:44PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The clinical-stage biotech from China has a promising coronavirus vaccine candidate. If it works, the big British pharma has a compound that could help it work better.

One of the world's largest vaccine manufacturers, GlaxoSmithKline (GSK -3.00%), is collaborating with China's Clover Biopharmaceuticals in the clinical-stage vaccine developer's efforts to combat the spread of the novel coronavirus COVID-19.

Adjuvant technology 

GlaxoSmithKline recorded $9.3 billion in vaccine sales in 2019, and its adjuvants are one big reason its vaccines are so popular. While the primary component of a vaccine is largely designed to provoke an immune response against a specific bad actor, adjuvants are chemicals that can be added to a variety of vaccines that make those immune responses more robust.

Two scientists working together.

Image source: Getty Images.

Clover Biopharmaceuticals doesn't have any vaccines available for commercial sale in China or anywhere else, but its latest candidate is already gaining a lot of attention. The company's potential new COVID-19 vaccine mimics a three-pronged protein found on the surface of the SARS-CoV-2 virus, and will soon be delivered with one of Glaxo's adjuvants.

All hands on deck

The spread of the COVID-19 globally thus far suggests that any company that develops an effective vaccine for it will need to seriously consider manufacturing constraints. Clover's partnership with GlaxoSmithKline is a step in the right direction, and one that we'll probably see repeated elsewhere in the near term. Earlier this month, GlaxoSmithKline and the Coalition for Epidemic Preparedness (CEPI) announced they would make the company's adjuvant technology available to just about any drugmaker with a viable vaccine candidate in development. 

So far, there are more than 77,000 confirmed cases of COVID-19 in China, and another 1,769 in 28 other countries. While the World Health Organization believes the disease can be kept from spreading to every corner of the globe, the window of opportunity to contain it is closing fast.

Cory Renauer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

GSK Stock Quote
GSK
GSK
$34.95 (-3.00%) $-1.08

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.