GSK Acquires Rights to COVID-19 and Flu Vaccines from CureVac
Key Takeaways:
- GSK has purchased the rights to COVID-19 and flu vaccines being developed in collaboration with German biotechnology company CureVac.
- GSK will pay CureVac as much as $1.56 billion to assume full control of the treatments.
- The companies have been working together on mRNA vaccines since 2020.
Global pharmaceutical giant GSK has recently announced a significant agreement with German biotechnology company CureVac to acquire the rights to develop, manufacture, and market COVID-19 and influenza vaccines. This strategic move comes as part of GSK’s ongoing efforts to expand its portfolio of vaccines and address the pressing global health challenges posed by infectious diseases.
Under the terms of the deal, GSK will pay CureVac a total of up to $1.56 billion, with an upfront payment of EUR400 million ($432 million) and additional payments of up to EUR1.05 billion ($1.13 billion) tied to development, regulatory, and sales milestones. This agreement marks a significant milestone in the collaboration between the two companies, which began during the COVID-19 pandemic in 2020.
Collaboration on mRNA Vaccines
Since joining forces in 2020, GSK and CureVac have been working together on the development of mRNA vaccines for infectious diseases. The latest agreement will see GSK assume full control of developing and manufacturing candidate vaccines for seasonal influenza, COVID-19, and avian influenza based on CureVac’s mRNA technology. These candidate vaccines are currently in phase II and phase I clinical development stages.
The decision to acquire the rights to these vaccines reflects GSK’s commitment to leveraging cutting-edge technologies and scientific expertise to address public health challenges. By expanding its vaccine portfolio to include potential COVID-19 and flu vaccines, GSK aims to contribute to global efforts to combat infectious diseases and protect public health.
Market Response and Financial Implications
Following the announcement of the deal, shares of CureVac initially rose but later dropped by 5% in holiday-shortened trading. CureVac’s Chief Executive Officer, Alexander Zehnder, expressed optimism about the financial position of the company following the agreement with GSK, highlighting the opportunity to focus on building a robust R&D pipeline.
Notably, the agreement between GSK and CureVac comes at a time when other pharmaceutical companies are also actively engaged in vaccine development efforts. Moderna, for instance, recently received a $176 million grant from the U.S. government to develop a vaccine for avian flu in humans. These developments underscore the importance of collaboration and innovation in addressing emerging health threats.
From a financial perspective, GSK’s American depositary receipts (ADRs) have shown positive performance, with a year-to-date increase of about 3.6%. As of the latest trading session, GSK’s ADRs were trading slightly higher at $38.40, reflecting investor confidence in the company’s strategic initiatives and growth prospects.
![GSK TradingView](https://www.orbitalaffairs.com/wp-content/uploads/2024/07/gsk-to-spend-1-56b-for-covid-19-flu-vaccine-rights.png)
Conclusion
The acquisition of rights to COVID-19 and flu vaccines from CureVac represents a significant milestone for GSK in its efforts to expand its vaccine portfolio and address global health challenges. By leveraging mRNA technology and scientific collaboration, GSK aims to develop innovative solutions to combat infectious diseases and protect public health.
As the pharmaceutical industry continues to focus on vaccine development and innovation, partnerships like the one between GSK and CureVac highlight the importance of collaboration and scientific advancement in addressing complex health challenges. The market response to this agreement underscores the potential impact of these efforts on public health and investor confidence in the companies involved.
Overall, the acquisition of COVID-19 and flu vaccine rights by GSK signals a proactive approach to addressing current and future health threats, positioning the company as a key player in the global fight against infectious diseases.
Source: Investopedia