GlaxoSmithKline PLC (NYSE: GSK) is joining the race for a COVID-19 vaccine with its newest acquisition, but it may be tough to catch Pfizer and BioNTech after their most recent results. GlaxoSmithKline announced that it is acquiring a 10% stake in the German biopharma firm CureVac.
The 10% stake is part of CureVac and GlaxoSmithKline’s collaboration for the research, development, manufacturing and commercialization of up to five mRNA-based vaccines and monoclonal antibodies targeting infectious disease pathogens.
Under the terms of the deal, GlaxoSmithKline will make an equity investment in CureVac of €150 million, representing close to a 10% stake, an upfront cash payment of €120 million.
The company also will make a one-time reimbursable payment of €30 million for manufacturing capacity reservation, upon certification of CureVac’s commercial-scale manufacturing facility currently under construction in Germany.
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 programs are not included in the collaboration announced today.
CureVac will be eligible to receive development and regulatory milestone payments of up to €320 million, commercial milestone payments of up to €380 million and tiered royalties on product sales.
GlaxoSmithKline stock traded at $41.65 on Monday, in a 52-week range of $31.43 to $48.25. The consensus price target is $47.70.
24/7 Wall St.Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
