Germany-based RNA therapy developer CureVac signed a strategic partnership agreement with pharmaceutical firm GlaxoSmithKline (GSK) today that will include a €150m ($176m) equity investment.
GSK will also make a $141m upfront cash payment to CureVac and a reimbursable one-time payment of $35m to secure manufacturing capacity upon certification of a facility the company currently has under construction. The deak will give GSK a 10% stake in CureVac.
Spun out of Eberhard Karls University of Tübingen in 2000, CureVac is developing messenger RNA (mRNA)-based drugs and vaccines for cancer and rare diseases. Its technology carries genetic code for specific proteins to the body’s immune system, which uses the instructions to produce antigens.
The company’s pipeline includes two oncology candidates in phase 1 clinical trials, one of which is being developed in collaboration with pharmaceutical firm Boehringer Ingelheim and one with nonprofit Ludwig Cancer Research.
CureVac has also advanced a potential prophylactic vaccine for Covid-19 into phase 1 clinical trials. It will be in line for up to $375m in development and regulatory milestone payments through the GSK deal, in addition to commercial milestone payments of up to $445m and tiered royalties on product sales.
The companies plan to partner on researching, developing, manufacturing and commercialising up to five vaccines and treatments for infectious diseases. CureVac will be responsible for development through phase 1 trials and will retain commercialisation rights for certain territories.
CureVac had previously raised approximately $774m in funding, most recently, agreeing a $339m funding commitment from German government-owned development bank KfW last month at a valuation of almost $1.5bn.
Biotechnology producer Genmab injected $22m in the company December 2019 as part of a strategic partnership, two years after pharmaceutical firm Eli Lilly supplied $53.3m as part of a collaboration agreement.
CureVac’s investors also include Dievini Hopp BioTech, Baillie Gifford, LBBW Asset Management Investmentgesellshaft, Landeskreditbank Baden-Württemberg, Chartwave, Coppel Family, Northview, Sigma Group, Bill & Melinda Gates Foundation, DH Capital, OH Beteiligungen and Leonardo Venture.
