GCEli Lilly and Company received first $189.52 million (about 286.8 billion won) out of the $240.2 million (about 308.7 billion won) upfront payment for the equity in its U.S. affiliate Curevo sold to Eli Lilly and Company.
The remaining $14.5 million (about 21.9 billion won) is expected to be paid after standard settlement procedures.
GC Biopharma said on the 10th that all closing conditions for the stock transfer transaction between Curevo and Lilly were met and it received the upfront payment. The upfront payment received this time is nonrefundable and the company plans to recognize the amount as net profit for the third quarter this year.
Earlier, GC Biopharma signed a contract in May to transfer all 21,075,336 shares of Curevo equity it held to Lilly. The total transaction size is up to $1.5 billion. Of this, $1 billion is the upfront payment, and the remaining $500 million will be paid as milestones tied to future commercialization performance.
Curevo is a shingles vaccine developer that GC Biopharma established in Seattle in 2018. Through this acquisition, Lilly secured rights to the next-generation shingles vaccine candidate "Amezosbatein (development code CRV-101)" under development by Curevo.
GC Biopharma plans to invest the funds secured through this transaction in future growth businesses such as premium vaccines and treatments for rare diseases.
The company said it expects to secure medium- to long-term cash flow through milestone distributions tied to commercialization performance, contract manufacturing (CMO) revenue, and sales-linked royalties.