(Bloomberg) -- GSK Plc agreed to pay as much as €1.4 billion ($1.5 billion) for the full rights to mRNA flu and Covid-19 shots it was developing with CureVac NV as the German biotech refocuses on cancer vaccines.

The partners are restructuring their collaboration, with GSK securing the right to develop, make and sell the vaccines, including potential combinations. CureVac will receive a €400 million initial payment and up to €1.05 billion in milestone payments, plus tiered royalties, the companies said Wednesday.

The deal comes as GSK seeks to beef up its vaccine portfolio following the successful launch of its RSV shot Arexvy. Alongside immunization candidates for seasonal flu and Covid-19 that are in mid-stage trials, GSK will also secure the rights to a shot in early stage trials for avian influenza.

GSK shares were little changed in early London trading. The stock is up about 4% since the start of the year. CureVac jumped as much as 25% in Germany, trading at €3.87 as of 9:11 a.m. local time

The agreement will give CureVac some much-needed financial firepower after being beset by clinical trial and patent challenges with its mRNA technology. The company has also announced it’s shedding 30% of its staff as part of a wider restructuring and will incur one-time restructuring charges of around €15 million. 

CureVac said it will refocus its work on “high-value mRNA projects” in oncology and other diseases where there is significant unmet medical need. It aims to report data from its early stage trial for a cancer vaccine in glioblastoma in the second-half of the year. 

The two companies have collaborated on the development of mRNA vaccines since the pandemic. However, CureVac’s failure to develop an mRNA shot with comparable efficacy to others on the market in 2021 saw the company’s share price plummet and it’s failed to regain the losses. 

(Updates with GSK shares in fourth paragraph)

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