Benzinga | Feb 3, 2021 05:15AM EST

GlaxoSmithKline, CureVac In Pact To Develop Vaccines For COVID-19 Variants

* U.K.-based GlaxoSmithKline Plc (NYSE: GSK) and Germany's CureVac BV (NASDAQ: CVAC) have announced to work together in a (euro)150 million collaboration for the development of a new generation of COVID-19 vaccines to tackle emerging variants of the virus.

* The collaboration will build on CureVac's first-generation mRNA-based COVID-19 vaccine candidate, CVnCoV, currently in Phase 2b/3 trial, and stable at standard 2-8 degrees Celsius cold chain conditions for vaccines.

* The vaccine candidate will use mRNA technology that would work on multiple variants of the Sars-Cov-2 virus and be ready for use in 2022, subject to approval. The development program will start immediately.

* Under the terms of the new collaboration agreement, GSK will have marketing authorization for the next-gen vaccine, except in Switzerland, and will have exclusive rights to develop, manufacture, and commercialize the next generation COVID-19 vaccine in all countries except Germany, Austria, and Switzerland.

* GSK will make an upfront payment of (euro)75 million and a further milestone payment of (euro)75 million and help manufacture up to 100 million doses of CureVac's first-generation COVID-19 vaccine candidate at its plant in Belgium. CureVac also has a manufacturing agreement with Bayer AG (OTC:BAYZF).

* Price Action: CVAC shares are up 4.68% at $103.32 in the pre-market session on the last check Wednesday.