Pfizer (PFE) - Get Report and BioNTech (BNTX) - Get Report said Wednesday they have struck a deal to provide 200 million doses of their Covid-19 vaccine candidate to the European Union, marking the largest order for the potential vaccine to date.
As part of the deal, the EU has an option to request an additional 100 million doses, the companies said in a statement. Deliveries are expected to begin by the end of 2020, subject to regulatory approval. Financial terms of the deal weren't disclosed.
The deal follows the companies' blockbuster announcement on Monday that their vaccine candidate, BNT162b2, had a more than 90% efficacy rate in Phase 3 trials.
"Since the onset of the pandemic, Pfizer's priority has been to develop a safe and effective vaccine, while simultaneously scaling up our manufacturing to deliver doses before the end of the year," Pfizer CEO Albert Bourla said in the statement.
Pfizer's announcement on Monday sparked a global rally in stocks amid expectations that the Covid-19 pandemic that has infected more than 51.5 million and killed nearly 1.3 million globally will soon be brought under control.
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At the same time, Bourla reportedly sold 62% of his shares in Pfizer on Monday, part of a predetermined plan adopted on Aug. 19 to adhere to insider trading laws.
According to a Securities and Exchange Commission filing, Bourla sold 132,508 shares at an average price of $41.94 a share, or $5.6 million. The 52-week-high for Pfizer's stock is $41.99, meaning Bourla sold his stock at almost its highest value in the past year.
The stock sale was triggered following Pfizer and BioNTech’s blockbuster announcement. Nonetheless, the preset plan worked out well for Bourla, given Pfizer’s share-price performance year to date as well as the potential risk of a hiccup in the vaccine trials as well as the efficacy of the results.
Pfizer stock has gained 2.4% over the past three months, much less than BioNTech, which has soared 64.7% over the same period, and less than other drugmakers who have also been working on a viable vaccine.
Bourla still holds 81,812 Pfizer shares, according to the filing.
Shares of Pfizer were down 0.81% at $38.36 in trading on Wednesday.