GC Biopharma completes receipt of W286.8b upfront payment from Curevo stake sale

GC Biopharma has completed receipt of a portion of the proceeds from the sale of its stake in Curevo, a US-based subsidiary developing a shingles vaccine, moving to secure funding for new business ventures.

According to filings on the Financial Supervisory Service's DART system Thursday, GC Biopharma received an upfront payment of 286.8 billion won ($191 million) under its agreement to transfer its entire stake in Curevo to US pharmaceutical company Eli Lilly.

The payment was made alongside the transfer of equity rights upon satisfaction of the deal-closing conditions, including regulatory approvals.

The company said the amount represents the final confirmed figure after adjustments for changes in the issuing company's working capital and transaction closing costs.

GC Biopharma decided on May 27 to transfer its entire stake in Curevo to Eli Lilly to secure funding for new business investment. The total transfer price, including milestones, amounts to 462.06 billion won.

Following receipt of the upfront payment, GC Biopharma stands to receive an additional 21.9 billion won upon fulfillment of further post-closing conditions. The company also expects to receive a milestone payment of approximately 153.3 billion won if sales targets for products related to the developed compound are met within a specified period. The scheduled transfer completion date, at which point the entire sale transaction is expected to be fully closed, is April 15, 2035.