Pfizer Inc. (NYSE: PFE) and BioNTech S.E. (NASDAQ: BNTX) each saw gains on Thursday after the companies announced additional details regarding their collaboration in the fight against COVID-19. Ultimately, the goal is to rapidly advance multiple COVID-19 vaccine candidates into human clinical testing based on BioNTech’s proprietary mRNA vaccine platforms, with the objective of ensuring rapid worldwide access to the vaccine, if approved.

This collaboration will leverage Pfizer’s broad expertise in vaccine research and development, regulatory capabilities and global manufacturing and distribution network.

The two companies plan to conduct joint clinical trials for the COVID-19 vaccine candidates initially in the United States and Europe across multiple sites. BioNTech and Pfizer intend to initiate the first clinical trials as early as the end of April 2020, assuming regulatory clearance.

Under the terms of the agreement, Pfizer will pay BioNTech $185 million in upfront payments, including a cash payment of $72 million and an equity investment of $113 million. Also, BioNTech is eligible to receive future milestone payments of up to $563 million for a potential total consideration of $748 million.

Pfizer and BioNTech will share development costs equally. Initially, Pfizer will fund 100% of the development costs, and BioNTech will repay Pfizer its 50% share of these costs during the commercialization of the vaccine.

Mikael Dolsten, chief scientific officer and president of Worldwide Research, Development & Medical at Pfizer, commented:

Combatting the COVID-19 pandemic will require unprecedented collaboration across the innovation ecosystem, with companies coming together to unite capabilities like never before. I am proud of Pfizer’s collaboration with BioNTech and have every confidence in our ability to harness the power of science – together – to bring forth a potential vaccine that the world needs as quickly as possible.

Pfizer stock traded up about 2% to $35.35 on Thursday, in a 52-week range of $27.88 to $44.56. The consensus price target is $41.14.

BioNTech stock was up about 11%, at $49.75 in a 52-week range of $12.52 to $105.00. The consensus price target is $35.40.

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