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Daiichi Axes Sanofi Vaccine Pact After Pertussis Jab Manufacturing Faces Snag

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  • Though Daiichi Sankyo (OTCMKTS: DSNKY) and Sanofi SA (NASDAQ: SNY) came forward to help produce other pharmas' COVID-19 shots, the companies are calling it quits on their own, separate vaccine alliance in Japan. 
  • Daiichi Sankyo has decided to suspend the Squarekids combination vaccine production and a development deal for the pentavalent combination shot VN-0105 after encountering a manufacturing snag.
  • Squarekids is a tetravalent combination vaccine for the prevention of diphtheria, pertussis, tetanus, and polio.
  • In a statement, Daiichi said it would stop making and supplying Squarekids due to a problem manufacturing pertussis vaccines.
  • It's an issue the company says it's worked to resolve, but now, Daiichi has elected to stop production altogether by ending its Sanofi deal. It will stop distributing the product from March 31. 
  • Daiichi Sankyo will compensate Sanofi to the tune of 15 billion yen, with plans to record the loss in the fourth quarter of its 2020 fiscal year, which ends on March 31.
  • Price Action: SNY shares are up 0.7% at $49.45, while DSNKY shares are down 3.4% at $28.97 in the market trading session on the last check Wednesday.
 

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Posted-In: COVID-19 VaccineBiotech News Health Care Contracts General

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