CSL Limited (ASX: CSL) has signed an agreement with the Australian government for a COVID-19 vaccine.
CSL vaccine update
CSL’s Seqirus has signed a final agreement with the Australian government to supply 51 million doses of the University of Queensland’s COVID-19 vaccine (V451) should clinical trials be successful. This follows the announcement of a binding heads of agreement.
The agreement includes an upfront financial commitment from the government to support the clinical and technical development activities that CSL will need to assume in order to progress V451 and secure access to onshore production and supply.
CSL has already invested in the ability to development and large-scale manufacture the V451 vaccine.
The large scale phase 2b/3 clinical study for V451 is almost ready. It will be a randomised, observer-blinded, placebo-controlled study across numerous countries and more than 100 sites. It will evaluate efficacy/effectiveness, immunogenicity and safety in adults aged 18 years and above.
The first subject for the phase 2b/3 will be enrolled in December 2020, with the goal of completing recruitment by March 2021. CSL is committed to demonstrating the vaccine is safe and effective prior to availability in the market.
Discussions have already commenced with the Australian Therapeutic Goods Administration to ensure those goals are met and also available to Australians in the shortest possible time.
CSL said that given the considerable risk, effort, cost and uncertainty associated with the development of these novel vaccines, management said it’s too early to calculate with any certainty the financial impact to the company.
Summary
CSL could be the key business to getting Australia back to normal life and a normal economy next year. It’s a high quality ASX share and one that could keep doing well over the long term. But there are other ASX growth shares I’d rather buy first like Pushpay Holdings Ltd (ASX: PPH) or Bubs Australia Ltd (ASX: BUB).
