British pharmaceutical giant GSK (GSK.L) has announced the acquisition of CureVac’s assets related to COVID-19 and influenza vaccine development, a move that bolsters GSK’s messenger RNA (mRNA) capabilities while providing CureVac with a crucial financial boost.
In a strategic deal finalized on Wednesday, GSK will pay CureVac €400 million ($430 million) upfront, with additional potential payments of up to €1.05 billion contingent on achieving specific milestones. This agreement not only strengthens GSK’s position as a leading vaccine manufacturer but also supports CureVac’s transition towards new focuses.
CureVac’s shares surged by 24% following the announcement, reaching a three-week high at 07:39 GMT.
Under the terms of the deal, GSK will assume control of CureVac’s advanced mRNA vaccine projects aimed at combating seasonal influenza, avian flu, and COVID-19. This includes vaccines currently in phase II clinical trials for flu and COVID-19, as well as a phase I trial for avian flu.
As part of its strategic shift, CureVac will reduce its workforce by approximately 30%, including 150 positions previously announced in April. This restructuring reflects the company’s pivot towards mRNA-based cancer therapies and other early-stage projects. The funding from GSK extends CureVac’s financial runway until 2028, securing its path forward as it refocuses on its new goals.
This acquisition aligns with GSK CEO Emma Walmsley’s strategy to strengthen the company’s vaccine portfolio and address future challenges posed by patent expiries and declining revenues from existing blockbuster medications.
The partnership between GSK and CureVac, which began in 2020 amid the COVID-19 pandemic, was originally aimed at developing mRNA vaccines for infectious diseases. Walmsley’s leadership reflects a commitment to advancing vaccine research as a cornerstone of GSK’s future growth strategy.
Despite the asset acquisition, GSK’s 7% stake in CureVac remains unaffected by the licensing agreement, a GSK spokesperson confirmed.
This latest move underscores GSK’s focus on expanding its vaccine offerings and supporting innovative therapies, as the company continues to address the evolving landscape of global health challenges.
