GSK Takes 10% of German COVID-19 Maker as CureVac Raises a Total of $640m

Jul 21, 2020 | COVID-19, Investor Watch, mRNA, News, Vaccine

GSK Takes 10% of German COVID-19 Maker as CureVac Raises a Total of $640m

Germany mRNA-based vaccine developer Curevac just closed its latest private financing round, raising a total of $640 million. Investors included the German government via the Kreditanstalt fur Wiederaufbau (KfW) with $343 million and GlaxoSmithKline putting in $171 million as well as new equity investments from Qatar Investment Authority (QIA) and a group of existing and new investors with the difference. CureVac was the company that the U.S. White House invited on premise to explore business deals. 

GSK gets into mRNA-Vaccine Space

CureVac announced that UK-based GSK and the company inked a strategic research, development, manufacturing and commercialization deal for up to five mNRA-based vaccines and monoclonal antibodies (mAbs) targeting infectious disease pathogens. This collaboration will compliment GSK’s existing mRNA capabilities with CureVac’s integrated mRNA platform.

Joint Efforts

The companies will combine their mRNA expertise on development opportunities across a range of infectious disease pathogens, selected with the potential to best leverage the advantages of this platform technology, while addressing significant unmet medical need and economic burden. CureVac’s existing COVID-19 mRNA and rabies vaccines research Programmes are not included in the collaboration announced today.

Terms

Under the terms of the deal, GSK will make an equity investment in CureVac of £130m (€150m), representing close to a 10% stake, an upfront cash payment of £104m (€120m) and a one-time reimbursable payment of £26m (€30m) for manufacturing capacity reservation, upon certification of CureVac’s commercial scale manufacturing facility currently under construction in Germany.

CureVac will be eligible to receive development and regulatory milestone payments of up to £277m (€320m), commercial milestone payments of up to £329m (€380m), and tiered royalties on product sales.

GSK will fund R&D activities at CureVac related to the development projects covered by the collaboration. CureVac will be responsible for the preclinical- and clinical-development through Phase 1 trials of these projects, after which GSK will be responsible for further development and commercialization. CureVac will be responsible for the GMP manufacturing of the product candidates, including commercialization, and will retain commercialization rights for selected countries for all product candidates.

Source: CureVac

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