BUENOS AIRES: An Argentine laboratory has struck a deal to help produce Russia's COVID-19 vaccine Sputnik V, according to a company statement shared by the country's government on Friday, helping pump up the local firm's share price.

Laboratorios Richmond has signed a memorandum of understanding with Russia's RDIF sovereign wealth fund to be able to manufacture the vaccine, which has so far been the main drug used in Argentina's fledgling inoculation program.

Argentina was one of the first countries in the region to sign an agreement with Russia to buy Sputnik V and has already received 1.22 million doses from the Russian Gamaleya Institute.

"This potential development will be carried out with the participation of Hetero Labs Limited, a laboratory established in India, with whom Laboratorios Richmond has had a strategic alliance for more than 25 years," the statement said

The government of President Alberto Fernández is looking to increase the purchase of COVID-19 vaccines before winter arrives and a possible second wave of infections. The country has registered over 2 million cases and almost 52,000 deaths.

Argentina received 904,000 vaccine doses from Chinese pharmaceutical company Sinopharm on Thursday, in addition to the 580,000 doses already delivered from Covishield, manufactured by the Indian Serum Institute.