GSK Pays CureVac $430M for Flu and COVID mRNA Vaccines; Partner Cuts 30% Staff

CureVac is set to undergo significant changes, including a reduction in workforce by approximately 30% and a shift in focus towards research and development (R&D). This news comes in conjunction with a new deal with GSK, wherein GSK is paying 400 million euros ($430 million) upfront for full rights to CureVac’s mRNA-based vaccines targeting influenza and COVID-19. This restructuring will help CureVac extend its financial sustainability until 2028.

The collaboration between CureVac and GSK began in July 2020, during the peak of the COVID-19 pandemic. Initially, GSK paid 120 million euros ($129 million) upfront for rights to certain vaccine candidates, excluding those in Austria, Germany, and Switzerland. Later, in 2021, GSK invested an additional 75 million euros ($80.6 million) to share the costs and profits of CureVac’s COVID-19 vaccines.

The newly revised agreement replaces the earlier ones, with GSK now committing to pay up to 1.05 billion euros ($1.13 billion) in milestone payments to gain full control over CureVac’s mRNA vaccine candidates for influenza and COVID-19. GSK will be responsible for the global development, production, and commercialization of these vaccines.

CureVac has collaborated with GSK on mRNA vaccine candidates targeting seasonal and avian influenza, as well as COVID-19. These candidates are currently in clinical development. Although GSK will take over these projects, CureVac will retain exclusive rights to additional, undisclosed infectious disease targets that have been validated preclinically from their previous partnership.

The restructuring of the deal comes after a setback three months ago when the partners' seasonal flu vaccine candidate failed to match the efficacy of approved products against influenza B strains. In response, CureVac planned to optimize the vaccine and conduct an additional phase 2 study.

The new agreement with GSK not only bolsters CureVac's financial position but also relieves the company of certain responsibilities from the original agreements. In April, CureVac had already announced plans to eliminate 150 roles through a “voluntary leaver” program, which extended its cash runway only until the fourth quarter of 2025.

On Wednesday, CureVac announced further substantial changes, including the reduction of its workforce by about 30%, shifting its focus more towards R&D. As of the end of last year, CureVac employed 1,172 people, with nearly half involved in R&D. Most of CureVac’s staff are based in Germany.

These workforce reductions, combined with the payment from GSK, will help extend CureVac’s financial runway until 2028. The remaining employees will focus on advancing the company’s pipeline, led by the cancer vaccine candidate CVGBM. CureVac aims to report phase 1 data on this candidate for glioblastoma within the year. By the end of 2025, the company plans to have two clinical candidates for shared-antigen cancer vaccines targeting solid tumors and blood cancers, with plans to initiate two additional phase 1 trials by the end of 2026.