StockMarketWire.com - Pharmaceutical giant GlaxoSmithKline invested £104m for a 10% stake in biotech company CureVac, while both companies agreed to develop vaccines and antibodies targeting infectious diseases.

The deal involved an upfront cash payment of £104m (€120m) and a one-time reimbursable payment of £26m (€30m) for manufacturing capacity reservation, upon certification of CureVac's commercial scale manufacturing facility currently under construction in Germany.

CureVac would also be eligible to receive development and regulatory milestone payments of up to £277m, commercial milestone payments of up to £329m and tiered royalties on product sales.

Under collaboration, both companies agreed to produce and commercialise up to five mRNA-basedvaccines and monoclonal antibodies.

The collaboration would complement GSK's existing mRNA capabilities with CureVac's integrated mRNA platform.

CureVac's existing Covid-19 mRNA and rabies vaccines research programmes were not included in the collaboration announced.

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