GlaxoSmithKline Buys Stake in German Coronavirus Vaccine Developer CureVac

GlaxoSmithKline (NYSE: GSK) is plowing more capital into messenger ribonucleic acid (mRNA) vaccine development. It has bought a nearly 10% stake in privately held German biotech CureVac for 130 million British pounds ($163 million), both companies announced in a joint press release published Monday morning.

As part of the deal, GlaxoSmithKline and CureVac will collaborate on the research, development, and potential marketing of up to five mRNA-based vaccines and monoclonal antibodies that target infectious diseases. CureVac will be eligible for up to 606 million pounds in milestone payments, plus royalties.

Although CureVac is currently developing an mRNA-based vaccine for the SARS-CoV-2 coronavirus, that program is not covered under the GlaxoSmithKline collaboration deal. GlaxoSmithKline is conducting its own coronavirus vaccine research and development activities.

Source Fool.com