FAST NEWS: CanSino receives Gates Foundation grant to develop polio vaccine

The latest: CanSino Biologics Inc. (6185.HK; 688185.SH) announced on Tuesday it has entered into a grant agreement with the Bill & Melinda Gates Foundation, which will provide over $2 million to support development of the company’s recombinant poliomyelitis vaccine based on one of its virus-like particles (project CS-2036).

Looking up: The company will accelerate clinical development of the vaccine in accordance with the development plan and milestones required by the Gates Foundation, with the potential for further funding from the well-known organization.

Take Note: The company said it can’t guarantee it will develop or commercialize CS-2036 successfully.

Digging Deeper: Founded in 2009 as a vaccine manufacturer, CanSino was listed on the Hong Kong Stock Exchange in March 2019 and on the Shanghai STAR Market in August 2020. The company sells multiple Covid vaccines, including an inhaled vaccine, and an injected one, Convidecia, using recombinant adenovirus carrier type 5 technology, which have been granted conditional approval in China. But with the easing of the Covid pandemic, demand for these vaccines has dropped significantly, causing CanSino’s revenue to plunge by 96.7% in the first half of this year. As that happened, the company recorded a net loss of 1.28 billion yuan ($175 million) for the period.

Market Reaction: After opened 5.7% higher, CanSino shares gave back most of those gains on Wednesday morning and closed up 1.1% at HK$22.95 by the midday break. The stock now trades at the lower end of its 52-week range.

Translation by A. Au

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