GlaxoSmithKline to Invest GBP130 Million in CureVac

   By Adria Calatayud 
 

GlaxoSmithKline PLC said Monday that it will invest 130 million pounds ($163.4 million) in German biotechnology company CureVac under a strategic collaboration to develop messenger RNA, or mRNA, technology.

Under the agreement, the companies will research, develop, manufacture and commercialize up to five mRNA-based vaccines and monoclonal antibodies targeting infectious disease pathogens, GSK said. CureVac's existing Covid-19 mRNA and rabies vaccines research programs aren't included in the collaboration, the British pharmaceutical giant said.

GSK said it will fund R&D activities at CureVac for the development projects covered by the collaboration, and Tubingen, Germany-based CureVac will be responsible for the preclinical- and clinical-development through phase 1 trials of these projects. After phase 1, GSK will be responsible for further development and commercialization, it said.

GSK's equity investment of GBP130 million will give it close to a 10% stake in CureVac, and the German company will be eligible to receive development and regulatory milestone payments of up to GBP277 million, commercial milestone payments of up to GBP329 million and tiered royalties on product sales, GSK said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

July 20, 2020 02:29 ET (06:29 GMT)

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