Stock Alert: Translate Bio Shares Surge 78% In Premarket On MRNA Vaccines Pact Expansion

(RTTNews) - Shares of Translate Bio Inc. (TBIO) are soaring over 78% in pre-market today after the company and Sanofi Pasteur, the vaccines global business unit of Sanofi, have agreed to expand their existing 2018 collaboration and license agreement to develop mRNA vaccines for infectious diseases.

Under the expansion agreement, Translate Bio would receive a total upfront payment of $425 million, consisting of a $300 million cash payment and a private placement common stock investment of $125 million at $25.59 per share representing a 50% premium to the 20-day moving average share price prior to signing.

Translate Bio noted that it would also be eligible for potential future milestones and other payments up to $1.9 billion, including $450 million of milestones under the 2018 agreement.

The stock has been trading in the range of $6.80 - $21.95 for the past one year, and closed Monday's trade at $16.24, up 94 cents or 6.14%. TBIO is currently trading at $29.00, up $12.76 or 78.57% in the pre-market session.