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Apparently, Sanofi noted that the vaccine was more responsive to younger patients, particularly those below 49 years.
After months of intense vaccine development, jointly developed coronavirus vaccine by Sanofi SA (Euronext: SAN) and GlaxoSmithKline PLC ADR (NYSE: GSK) will not be rolled out as planned due to technical reasons.
According to a statement released by both companies, their experimental coronavirus vaccine failed to show sufficient efficacy in older patients, particularly those over 50 years. Hereby pushing the rollout from mid next year to Q4.
“We have identified the path forward and remain confident and committed to bringing a safe and efficacious COVID-19 vaccine,” said Thomas Triomphe, the head of Sanofi’s vaccines division.
Notably, both companies anticipate launching phase 2 of the vaccine development in February 2021. The new study phase will be backed by the United States Biomedical Advanced Research and Development Authority (BARDA). Thereafter around the second quarter, the joint research expects to launch phase 3.
It was a disappointment to the respective countries that had ordered the Sanofi-GSK coronavirus vaccine. As a result, they will have to continue with the precautionary measures in place and the economy at siege hoping for lesser fatalities.
Apparently, Sanofi noted that the vaccine was more responsive to younger patients, particularly those below 49 years. “The results showed an immune response comparable to patients who recovered from COVID-19 in adults aged 18 to 49 years, but a low immune response in older adults likely due to an insufficient concentration of the antigen.” Sanofi indicated in the statement.
Market Perspective on Sanofi-GSK Coronavirus Vaccine Updates
As a result of the announcement, Sanofi shares are down approximately 2.49% during Friday’s market to trade around €79.75. On the other hand, GlaxoSmithKline shares are down approximately 0.24% to trade around $37.88.
The market data provided by Marketwatch shows both companies have significantly dropped year to date at the height of the coronavirus pandemic. As for Sanofi shares, they are down approximately 11.09%, 8.98%, 7.13%, and 4.69% in the past twelve months, three months, one month and five days respectively.
On the other hand, GSK shares are down 19.20%, and 2.91% year to date, and three months respectively. However, with a market valuation of €102.42 billion and $93.32 for Sanofi and GlaxoSmithKline respectively, they are in a position of delivering a better vaccine in the highlighted timeline.
There are 70,817,058 reported coronavirus cases globally. Whereby those who have recovered totaled 49,244,055, while the fatalities stand at 1,590,689.
With projections indicating a possible spike before coronavirus vaccines are globally rolled out, it will be plausible for some countries to approve the Sanofi-GSK vaccine for younger patients beforehand.