What happened
Shares of Moderna (MRNA 1.69%) climbed 6.4% on Thursday after the biotechnology company said that it extended a manufacturing agreement with a key supplier for its experimental coronavirus vaccine.
So what
Global pharmaceutical manufacturing platform CordenPharma will supply Moderna with "large-scale volumes" of lipids for its COVID-19 vaccine candidate, mRNA-1273.
"The expanded agreement will begin immediately in order to rapidly meet Moderna's increasing demand over the upcoming months, with an emphasis on securing their future long-term supply," CordenPharma said in a press release.
Moderna stock rose on Thursday after it struck a deal to ramp up its COVID-19 vaccine production capabilities. Image source: Getty Images.
The deal will see CordenPharma use its network of manufacturing facilities in the U.S. and Europe to produce the materials Moderna needs for its vaccine.
"We are hopeful Moderna's technology represents a positive impact for people suffering from COVID-19 across the globe, and we are honored to contribute to the industry as a whole," CordenPharma CEO Dr. Michael Quirmbach said.
Now what
After its phase 1 clinical study demonstrated promising early results for its experimental mRNA-1273 drug, Moderna is now expected to begin a phase 2 trial. A government registry of clinical trials shows that Moderna has already begun recruiting participants for the study.
