Stock Alert: Translate Bio Hits New 52-week High After Sanofi Deal Expansion

(RTTNews) - Shares of Translate Bio Inc. (TBIO) are surging more than 56 percent or $9.15 in Tuesday's morning trade at $25.39, after touching a new 52-week high of $25.95 earlier.

Tuesday, Translate Bio and Sanofi Pasteur, the vaccines global business unit of Sanofi (SNYNF, SNY), said they have agreed to expand their existing 2018 collaboration and license agreement to develop mRNA vaccines for infectious diseases.

Lexington, Massachusetts-based Translate Bio is a clinical-stage messenger RNA or mRNA therapeutics company that is developing medicines to treat diseases caused by protein or gene dysfunction.

Under the deal, Translate Bio will 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 percent premium to the 20-day moving average share price prior to signing. Translate Bio will 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 traded in a range of $6.80 to $25.95 in the past 52 weeks.