CureVac's stock soars on GSK's $1.56 billion deal for its COVID-19 and flu vaccines

By Barbara Kollmeyer

U.S.-listed shares of CureVac NV surged on Wednesday after GSK PLC announced an offer worth up to $1.56 billion (EUR1.44 billion) for the rights to the German biopharmaceutical's COVID-19 and flu vaccines.

CureVac's stock (CVAC), down 20% so far this year, jumped 23% in premarket trading, echoing a move seen for overseas shares. Shares of GSK (UK:GSK) (GSK), up just over 3% year-to-date, were flat.

GSK said the deal will give the U.K.-based pharmaceutical giant the rights to develop, manufacture and commercialize CureVac's messenger RNA-based candidate vaccines for flu and COVID-19.

Collaborating since 2020, GSK and CureVac currently have vaccine candidates for seasonal influenza and COVID-19 in Phase II development, and avian influenza in Phase I. All vaccines will now come under GSK's control.

CureVac will get EUR400 million upfront, with an additional amount of up to EUR1.05 billion for "development, regulatory and sales milestone payments as well as tiered royalties in the high single to low teens range."

CureVac shares have struggled since a stellar U.S. debut in August 2020, after the company tried and failed to develop a pandemic-era COVID vaccine. Shares took another hit earlier this year when Germany ended a pandemic agreement with both CureVac and GSK.

In a statement on Wednesday, CureVac announced a restructuring to go along with the GSK deal, which will see a 30% reduction in its workforce. The company said it would now be able to "focus its resources on high-value mRNA projects in oncology and other select areas of substantial unmet medical need."

-Barbara Kollmeyer

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07-03-24 0754ET

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