The Trump government is going to pledge almost $2.1 billion to two pharmaceuticals- GlaxoSmithKline Plc and Sanofi to bring out the vaccines that would finally stop the coronavirus pandemic spreading throughout the globe. This is said to be the biggest US investment in snapping up supplies and fast-tracking shots.
The scheme is called Operation Warp Speed, and the Government is going to fund all the clinical trials needed for the procedure. This also infers that the government would be carrying close to 100 million doses of it if the results seem satisfactory. And if needed, a further 500 million doses. This did result in the shares rising for both the companies- Glaxo by 1.6% while Sanofi 1.4%.
This deal is one of the many deals that the government has brought out in order to find results. But there has been a concern that such leaps made by the US government might leave other countries far behind in their struggle to find a vaccine. And right now, Vaccine seems to be the only thing that can stop the killing machine that is coronavirus.
Even the United Kingdom government has signed deals with Glaxo and Sanofi to lock down supplies for the vaccine. Considering GSK and Sanofi are the biggest vaccine makers in the world, it is quite natural that they would be in much demand in these perilous times.