GSK Pays $430M Upfront for CureVac's mRNA COVID-19, Flu Vaccines

GSK announced on Wednesday that it is revising its existing partnership with CureVac, a German biotech firm, to concentrate on developing investigational mRNA vaccines for influenza and COVID-19. This decision includes withdrawing from other infectious disease projects.

Under the new terms, GSK will pay CureVac €400 million upfront, equivalent to approximately $430 million. Additionally, GSK has committed up to $1.13 billion in future development, regulatory, and sales milestones, along with tiered royalties ranging from high-single to low-teens percentages. This new agreement will replace all previous financial terms from their prior contract.

GSK will obtain global rights to develop and commercialize CureVac’s mRNA vaccines for influenza and COVID-19, including combination formulations. Currently, the companies have seasonal flu and COVID-19 vaccines in Phase II trials and an avian flu candidate in Phase I. According to both companies, these candidates possess best-in-class potential.

Tony Wood, GSK’s Chief Scientific Officer, expressed in a statement the company’s enthusiasm for advancing their flu and COVID-19 programs. He emphasized the potential to change the standard of care with these 'best-in-class mRNA vaccines.' Wood highlighted that the amended agreement will merge CureVac’s cutting-edge technology with GSK’s intellectual property, machinery, and capabilities to bring these promising vaccines to market swiftly.

The original collaboration between CureVac and GSK was established in July 2020. At that time, GSK invested nearly $130 million upfront and acquired almost a 10% equity stake in CureVac. The companies had initially planned to combine their mRNA expertise to develop up to five vaccine candidates and monoclonal antibodies targeting various infectious diseases, though specific programs were not disclosed.

Under the new contract, CureVac will hold exclusive rights to other targets that were previously undisclosed and preclinically validated under the initial agreement. The German company retains the flexibility to further develop or partner these mRNA vaccine candidates for other infectious diseases as it deems suitable.

The renegotiated agreement coincides with CureVac’s announcement of a strategic restructuring initiative. This new strategy aims to concentrate resources on high-value mRNA projects in cancer and other therapeutic areas. As part of this streamlining effort, CureVac plans to reduce its workforce by around 30% to create a more efficient organization. By reallocating its resources and focusing its R&D efforts, CureVac expects to introduce at least two clinical candidates by the end of 2025 and initiate at least two new Phase I studies by the end of 2026.

The reorganization, coupled with the potential maximum value from the revised GSK deal, should extend CureVac’s operational runway until 2028.

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