GlaxoSmithKline Joins the Race for a COVID-19 Vaccine
GlaxoSmithKline has announced that it is acquiring a 10% stake in the German biopharma firm CureVac.
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GlaxoSmithKline PLC (NYSE: GSK | GSK Price Prediction) 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.
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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.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
