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GSK Strikes €1.4 Billion Vaccine Deal with CureVac

Analyst Team trader
Updated 3 Jul 2024

GlaxoSmithKline (LON:GSK), the global healthcare company, has announced a significant licensing arrangement with CureVac (NASDAQ: CVAC), an mRNA technology company, to develop and commercialise vaccines. The deal, valued at up to €1.4 billion, involves multiple infectious diseases, including influenza, COVID-19, and avian flu.

The partnership represents one of the largest investments by GSK in mRNA vaccines, a technology that gained prominence during the COVID-19 pandemic. Essentially, mRNA vaccines work by teaching cells how to make a protein that will trigger an immune response without using the live virus that causes the disease.

Under the terms of the agreement, CureVac will be responsible for the initial development of the vaccines. Following the development stage, GSK will handle the further development, manufacturing, and commercialisation across its extensive global network. The agreement stipulates milestone payments to CureVac, which could sum up to the €1.4 billion, including an upfront payment and potential future payments dependent on the achievement of certain research and development milestones.


This new deal provides a boost to CureVac, which faced setbacks earlier in its efforts to develop a COVID-19 vaccine. The German biotech company, which was founded in 2000, is a pioneer in the mRNA field, but its initial COVID-19 vaccine candidate showed lower efficacy in preventing disease compared to other mRNA vaccines produced by companies such as Pfizer (NYSE: PFE), BioNTech (NASDAQ: BNTX) and Moderna (NASDAQ: MRNA).

For GSK, the partnership with CureVac underlines a robust commitment to expanding its vaccine portfolio leveraging mRNA technology. GSK believes that mRNA vaccines offer a significant opportunity in the future of immunizations due to their ability to be developed and manufactured rapidly, which is critical in responding swiftly to new infectious disease threats.

Furthermore, the collaboration is indicative of a broader industry trend where big pharmaceutical companies are looking to strengthen their vaccine pipelines through agreements with smaller biotech firms specialising in innovative technologies.

The financial community has shown interest in how such alliances might shape the industry's future, particularly in the rapidly evolving sector of vaccine research and development. As healthcare continues to tackle ongoing challenges posed by emerging variants of viruses, this partnership between GSK and CureVac highlights the importance of investment and collaboration in bringing new and effective vaccines to the market.

GSK's substantial deal with CureVac is set to advance the development of new mRNA vaccines, potentially transforming the landscape of preventive healthcare against several infectious diseases. The strategic move aligns with GSK's focus on innovation in vaccine technology and demonstrates the potential of mRNA to address current and future global health challenges.

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The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.