GC Biopharma’s U.S. affiliate, Curevo Vaccine, is set to be acquired by global pharmaceutical giant Eli Lilly in a deal valued at up to $1.5 billion (approximately 2.25 trillion won). The transaction is expected to bring a massive financial windfall of up to 460 billion won to South Korea-based GC Biopharma.
GC Biopharma announced on May 27 that Curevo has signed a definitive agreement to transfer 100% of its issued shares to Lilly. The transaction is scheduled to close on August 24.
Under the terms of the agreement, Lilly will secure full ownership of Curevo and acquire the global rights to amezosvatein, a next-generation shingles vaccine candidate currently under clinical development.
The total value of the transaction reaches up to $1.5 billion. The deal is structured to include an immediate upfront payment at closing, followed by contingent milestone payments (staged technology fees) to be paid out as specific conditions are met throughout the development and commercialization phases.
GC Biopharma, which holds a 20.3% stake in Curevo, will receive a proportional share of the upfront payment upon closing, an inflow it expects to reflect directly in its net profit for the period. The total aggregate proceeds GC Biopharma is eligible to receive stand at $303.92 million (approximately 459.9 billion won). This includes an upfront payout of 306.6 billion won, with an additional 153.3 billion won obtainable through future milestone achievements.
Industry analysts note that the high-profile acquisition strongly reflects the clinical promise of amezosvatein. In a global Phase 2 clinical trial, the vaccine candidate successfully demonstrated non-inferior immunogenicity and superior tolerability in a direct, head-to-head comparison with GlaxoSmithKline’s (GSK) market-leading shingles vaccine, Shingrix.
Through this transaction, GC Biopharma has successfully established a highly diversified, mid- to long-term earnings structure that includes:
Immediate proceeds from the liquidation of its Curevo equity
Potential future milestone distributions
Long-term contract manufacturing organization (CMO) revenues
Commercial sales-based royalties
"This transaction is a direct validation of our dedicated R&D investment and collaborative strategy, which we have consistently driven since Curevo’s earliest days," said Heo Eun-chul, CEO of GC Biopharma. "The deal is highly meaningful because it transcends a simple return on investment, securing a highly stable, future-proof cash flow structure for our upcoming business ventures."
Moving forward, GC Biopharma plans to strategically deploy the newly acquired capital to accelerate its core pipeline, focusing heavily on the development of subcutaneous immunoglobulin (SCIG), premium vaccines, and innovative therapies for orphan diseases.
