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Translate Bio (TBIO) Delivers 175% Gain In Little Less Than 3 Months

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Shares of Translate Bio Inc. (TBIO) touched an all-time high of $27.24 in intraday trading yesterday (Jun.23, 2020), thanks to the expanded collaboration with Sanofi Pasteur, the vaccines global business unit of Sanofi (SNY), to develop mRNA vaccines across all infectious disease areas.

Translate Bio and Sanofi originally entered into an initial three-year deal on June 11, 2018, to develop mRNA vaccines for up to five undisclosed infectious disease pathogens. Translate Bio received an upfront payment of $45 besides being entitled to receive up to $760 million in certain development, regulatory and sales-related milestones across several vaccine targets, among others.

The 2018 deal was signed just days before Translate Bio went public on the Nasdaq Global Select Market on June 28, 2018.

On March 27, 2020, Translate Bio and Sanofi again signed a deal with the goal of advancing an efficacious and safe SARS-CoV-2 vaccine into clinical development.

We alerted our premium subscribers to TBIO on April 6, 2020, when the stock was trading around $9.90. (Report titled "A message, well delivered...").

Under the collaboration with Sanofi, Translate Bio has been testing multiple COVID-19 vaccine candidates in vivo for immunogenicity and neutralizing antibody activity to support lead candidate selection. The companies have the goal of initiating a first-in-human clinical trial of a COVID-19 vaccine in the fourth quarter of 2020.

Building upon their existing collaboration, the two companies, on June 23, 2020, expanded the deal to develop mRNA vaccines across all infectious disease areas.

Under the expanded deal, Translate Bio will receive a total upfront payment of $425 million, potential future milestones and other payments up to $1.9 billion, including $450 million of milestones under the 2018 agreement, and tiered royalty payments based upon worldwide sales of the developed vaccines.

Sanofi will pay for all costs during the collaboration term and will receive exclusive worldwide rights for infectious disease vaccines.

Translate Bio and Sanofi are also advancing an mRNA vaccine development candidate against influenza through preclinical studies with clinical trial initiation anticipated in mid-year 2021. Additional mRNA vaccine development programs under the collaboration include another viral pathogen and a bacterial pathogen.

Apart from the vaccine development programs, Translate Bio also has a couple of mRNA therapeutics in development with a primary focus on the lungs.

Included in the Company's mRNA therapeutics pipeline are one clinical product candidate and 4 other compounds in the discovery stage. The mRNA therapeutic under clinical testing is MRT5005, under a phase I/II trial for the treatment of cystic fibrosis.

Had you bought Translate Bio shares on April 6, 2020, the day we alerted you, you would have already made a gain of 175%. And, as Translate Bio broadens its partnership with Sanofi with the goal of ultimately delivering vaccines on a global scale, a need underscored by the current pandemic, the stock might still have room to run.

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