GlaxoSmithKline can acquire rights to CureVac’s COVID and influenza vaccines

The Bundeskartellamt has cleared the planned acquisition by GSK plc (GlaxoSmithKline) of intellectual property and patent rights relating to certain vaccine candidates from CureVac SE in the first phase of merger control.

GSK is a global biopharma company offering a wide range of vaccines, general medicines and specialty medicines. CureVac is a biopharmaceutical company headquartered in Tübingen which is developing a new class of mRNA-based drugs.

Andreas Mundt, President of the Bundeskartellamt: “Acquisitions relating to pharma research must be looked at closely. Especially when it comes to vaccine development, it is essential for patients that we protect competition in innovation. Our investigations have shown that for both COVID and influenza a variety of vaccines with different mechanisms of action are being developed. Even after the acquisition the research landscape will remain diverse.”

The notified transaction relates to vaccines for COVID and seasonal influenza, in particular, but also pandemic and universal influenza as well as to combined influenza and COVID vaccines. CureVac and GSK have so far worked together based on collaboration agreements to develop these vaccine candidates. The vaccine candidates are currently still in different phases of clinical trials, meaning none of the vaccines in question have been approved yet.

The Bundeskartellamt’s investigations have shown that even post-pandemic, COVID vaccines continue to be the subject of extensive research worldwide. According to the World Health Organization, there are as many as 15 ongoing mRNA-based COVID vaccine projects, and approximately 70 COVID vaccine candidates with other mechanisms of action. With regard to seasonal influenza, the investigations have also shown that the research landscape is very competitive. The project is not expected to significantly impede competition in any of the segments affected. 

The Bundeskartellamt could only examine the project due to the transaction value threshold which was incorporated into the German Competition Act (GWB) in 2017. The transaction value threshold allows the Bundeskartellamt to examine under competition law mergers where companies or assets which (at the time of the merger) generate little or no turnover are acquired at a purchase price of more than 400 million euros. GSK and CureVac have agreed a purchase price of 400 million euros for the transfer of the intellectual property rights and patents, plus possible milestone payments and royalties of up to 1.05 billion euros.