CureVac to cut costs, starts GSK-partnered bird flu vaccine trial

CureVac, once a player in the Covid-19 vaccine race, announced that it plans to reduce costs across the company.

It said Wednesday that 150 employees have agreed to voluntarily leave the company. The news was first reported last month by German news outlet SWR. CureVac currently has more than 1,100 employees, according to the annual report.

CureVac said its reorganization will lead to savings starting in the second half of the year, and its cash runway is now set to extend into the fourth quarter of 2025. Its stock $CVAC was down about 8% on Wednesday morning.

In its fourth-quarter earnings update, the company also announced that its and GSK’s joint pandemic preparedness agreement with the German government would be terminated at the end of May. Germany had contracted the companies to supply mRNA-based vaccines in the event of a public health emergency. CureVac noted that plans to complete its vaccine manufacturing facility remain unaffected, and the site is expected to be certified in the second half of the year.

Thaminda Ramanayake

On June 1, CureVac will also be getting a new chief business officer. Thaminda Ramanayake was previously CBO at Affini-T Therapeutics.

CureVac also announced the start of a Phase 1/2 study of an H5N1 avian flu vaccine candidate as part of its collaboration with GSK to develop mRNA vaccines. There are escalating concerns about a bird flu pandemic in humans since the disease spread to dairy cows in the US. The FDA on Tuesday reported evidence of the virus in commercial pasteurized milk, but maintained that the pasteurization process is likely to inactivate the virus. The regulator said the commercial milk supply is still safe.

The avian flu vaccine study will test up to five dose levels compared to a placebo control in two groups of adults: those aged 18 to 64 years old, and adults aged 65 to 85.

CureVac’s partnership with GSK began in July 2020, and they were major players in the Covid-19 vaccine race until their vaccine failed a pivotal study and efforts flamed out. They are currently developing a seasonal mRNA flu vaccine, though the partners recently reported mixed data from a Phase 2 trial.