AstraZeneca Pens First Deal for COVID-19 Vaccine in China

AstraZeneca (AZ) has reached an agreement with China’s Kangtai Biologics to help develop and manufacture its promising coronavirus candidate AZD1222, the first deal the British drugmaker has forged for its experimental vaccine in China.

AZ said the deal hands the Shenzhen-based firm exclusive rights to develop, produce, supply and commercialize the vaccine candidate in China. The deal may also involve forays into “cooperation in other regions and markets” in the future, the company said.

The arrangement will see Kangtai Biologics, one of the country’s largest vaccine manufacturers, establish production capacity for at least 100 million vaccine doses by the end of the year. That capacity will double to at least 200 million doses by the end of 2021, according to AZ, who did not disclose financial details of the agreement.

AZ has been hard at work establishing vaccine deals around the world, including in the U.S. and the EU. The drugmaker was granted a $1.2 billion contract with HHS’ Biomedical Advanced Research and Development Authority (BARDA) that ensures 300 million vaccine doses for the U.S. and has also hashed out a 400 million dose supply agreement with the EU under its Inclusive Vaccines Alliance, among other arrangements.

The experimental vaccine, which AZ licensed from the University of Oxford, is currently in late stage trials in England, Brazil and South Africa, and the company expects to kick off phase 2/3 trials in the U.S. soon. — James Miessler