GSK forms new deal with CureVac to make Covid variant vaccines

GlaxoSmithKline has announced a new partnership with German biopharmaceutical firm CureVac to develop vaccines that target new variants of the coronavirus.

The FTSE 100 pharmaceutical giant also said it would help manufacture 100 million doses of the group’s first generation Covid vaccine in Belgium later this year, with hopes they  will be introduced in 2022.

A total of €150million (£132million) will be invested by GSK in the research of CureVac, which is creating a vaccine that uses messenger RNA to target the disease.

GlaxoSmithKline said it will invest a total of €150million (£132million) in the research of CureVac, which is developing a vaccine that uses messenger RNA to target the disease

Under the terms of the agreement, GSK will hold the sole right to develop, make and market the next generation Covid-19 vaccine except in Switzerland, where it will additionally not have market authorisation, Germany and Austria.

‘The increase in emerging variants with the potential to reduce the efficacy of first generation Covid-19 vaccines requires acceleration of efforts to develop vaccines against new variants to keep one step ahead of the pandemic,’ the companies remarked.

GSK further revealed today that its sales rose by only 1 per cent last year, blaming it partly on declining demand for antibiotics and vaccines for conditions such as Hepatitis. Shares were down 4.75 per cent to £13.03 during the late afternoon.

This was despite its consumer healthcare division growing 12 per cent to more than £10billion on the back of higher sales of digestive health products, and pain relief medication like Voltarol and Panadol.

It said the division’s strong performance helped the group’s operating profits to climb by over £800million to £7.8billion, as did sales of its Horlicks brand and shares in Hindustan Unilever.  

Demand for influenza vaccines also rose across all markets as governments prioritised their citizens to protect themselves from the flu. In England alone, a record number of over-65s have had the influenza vaccine.

Demand for GSK’s influenza vaccines also rose across all markets as governments prioritised their citizens to protect themselves from the flu

Its largest division – pharmaceuticals – experienced a 3 per cent fall back in sales to £17.1billion as HIV sales stayed flat, though it had large percentage rises in immuno-inflammation and oncology drugs.   

Nonetheless, chief executive Emma Walmsley declared 2020 was ‘one of significant progress for GSK’ adding that the group achieved ‘strong performances of new products and effective cost control.’

In a separate statement announcing the CureVac deal, she stated that it would ‘combine our scientific expertise in mRNA and vaccine development to advance and accelerate the development of new Covid-19 vaccine candidates.’ 

GSK bosss Emma Walmsley declared 2020 was ‘one of significant progress for GSK’ adding that the group achieved ‘strong performances of new products and effective cost control’

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Public health officials across the world are increasingly raising concerns about new virus variants that are more contagious or resistant to existing vaccines. Scientists are closely tracking these mutations to make sure they quickly identify variants of concern.

This week, authorities in England are conducting house-to-house coronavirus testing in targeted communities in a bid to snuff out a new variant before it spreads widely and undermines a nationwide vaccination program.

British authorities want to test about 80,000 people in eight areas where the variant, first identified in South Africa, is believed to be spreading after a handful of cases were found in people who had no contact with the country or anyone who travelled there.

Public health officials are concerned about the variant first identified in South Africa because it contains a mutation of the virus’ characteristic spike protein targeted by existing vaccines. The mutation may mean the vaccines offer less protection against the variant.