SK Bioscience’s share price soared over 16 percent on Thursday after the company signed a manufacturing deal with international pharmaceutical firm MSD.

According to the Health Ministry and SK Bioscience on Friday, SK Bioscience and MSD inked the contract manufacturing deal to produce a vaccine.

Following the signing, SK Bioscience’s stock price increased 16.39 percent to 83,100 won ($64.04) on Thursday, largely on the hopes that the company's sluggish performance will improve in the future.

Details of the deal are expected to be announced on Monday.

In the first quarter of this year, SK Bioscience posted an operating loss of 29.2 billion won, shifting from a profit of 23.8 billion won at the beginning of 2022.

SK Bioscience CEO Ahn Jae-yong said during a press conference held at the end of April that the firm will invest 2.4 trillion won over a five-year period to improve its performance.

Ahn also hinted that the company could sign new contract manufacturing deals with international pharmaceutical firms as early as the first half this year.