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By Anthony O. Goriainoff


GSK struck a deal to buy the rights to CureVac's Covid-19 and flu vaccines for up to 1.45 billion euros ($1.56 billion), bolstering the U.K. pharmaceutical company's vaccine portfolio at a time when bird-flu concerns are boosting demand.

Governments around the world are stepping up efforts to prevent the potential spread of the avian flu virus to people. Vaccine maker Moderna on Tuesday received $176 million from a U.S. government program to accelerate development of avian flu vaccines for humans. Australia's CSL last month got an order for more than 40 million doses of bird flu vaccines from the European Union.

Germany-based biotechnology company CureVac said the licensing agreement with GSK is part of a strategic overhaul that will see it reduce its workforce by around 30% in a bid to streamline its operations. The company in May said it had more than 1,100 employees.

The deal restructures an existing collaboration between the two companies that began in 2020, at the height of the pandemic, when CureVac sought partners to develop its Covid-19 vaccine candidate.

Under the licensing agreement, GSK will assume full control of developing, manufacturing and commercializing globally the candidate vaccines the two companies developed through their collaboration. These include shots for seasonal flu and Covid-19 that are currently in mid-stage trials and for avian flu in early-stage clinical development, the companies said.

CureVac will receive EUR400 million upfront and up to EUR1.05 billion in additional payments, subject to reaching development, regulatory and sales milestone, as well as royalties, the companies said. It will also retain exclusive rights to the additional undisclosed infectious disease targets from the prior collaboration that haven't yet been validated in clinical trials.

The vaccines are based on so-called messenger RNA, or mRNA, technology that was widely used to combat Covid-19. The shots use messenger ribonucleic acid instead of an actual bacteria or virus in the production process.

The payments from GSK and CureVac's savings in personnel costs it expects from its own restructuring mean the company will have cash to run its operations until 2028, CureVac said.

CureVac said the restructuring will allow it to focus resources on mRNA projects in oncology and other areas. The company aims to create a leaner organization refocused on technology innovation, research and development, it said.


Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com


(END) Dow Jones Newswires

07-03-24 0514ET