Eli Lilly is elevating the infectious disease prevention field as a new investment destination by acquiring three vaccine companies at once. Having strengthened its cash-generation capacity with GLP-1 class drugs for obesity and diabetes, the global pharmaceutical company is now moving to secure a vaccine pipeline following anticancer drugs and immunotherapies. The acquisition targets include Curevo, which was established through a joint investment by GC Biopharma and U.S.-based experts.

According to the Bio-Economy Research Center of the Korea Biotechnology Industry Organization, Lilly on the 26th signed agreements to acquire three vaccine companies: Curevo, LimmaTech Biologics, and The Vaccine Company. The total transaction value is up to USD 3.83 billion, equivalent to around KRW 5 trillion.

This transaction was pursued to strengthen Lilly’s research and development capabilities in infectious diseases. Lilly recently hired Dr. Peter Marks, former director of the FDA’s Center for Biologics Evaluation and Research (CBER), as head of its infectious disease division. The acquisition of the three vaccine companies is a major deal concluded only a few months after this appointment.

GC Biopharma affiliate Curevo to be acquired by Lilly

Lilly will acquire Curevo for up to USD 1.5 billion (approximately KRW 2.254 trillion). Under the terms of the agreement, Curevo shareholders may receive up to USD 1.5 billion in cash, including an upfront payment and additional milestone payments upon achievement of specified targets.

Curevo is a U.S. affiliate established in November 2017 by GC Biopharma through a joint investment with local experts in the United States, with the aim of entering the global vaccine market. In October last year, GC Biopharma signed a contract manufacturing agreement with Curevo to supply products following the commercialization of Amezosvatein, a next-generation herpes zoster (shingles) vaccine candidate.

Curevo’s lead candidate is Amezosvatein, an adjuvanted subunit vaccine for the prevention of herpes zoster in adults. The current shingles vaccine market is dominated by Shingrix from GSK. Shingrix recorded 2025 sales of GBP 3.558 billion (approximately KRW 7.2 trillion), up 6% year-on-year.

Amezosvatein is a candidate that focuses on improving the tolerability issues of existing shingles vaccines. Although the current standard of care has demonstrated preventive efficacy, there have been reports that some individuals avoid the second dose due to fatigue, chills, and injection-site pain following vaccination. Curevo has been developing the vaccine using next-generation synthetic immunostimulants to maintain immune responses while reducing the burden of adverse reactions.

In a Phase II clinical trial directly comparing Amezosvatein with the standard of care, the candidate showed comparable immune responses on key endpoints and reportedly reduced side effects such as activity-limiting fatigue, chills, and injection-site pain by more than half. As research increasingly suggests that shingles elevates stroke risk and that shingles vaccination is associated with a reduced risk of dementia, there are expectations that a vaccine with improved tolerability could help increase vaccination rates.

Lilly will also acquire LimmaTech Biologics for up to USD 780 million (KRW 1.172 trillion). This amount includes an upfront payment and additional payments contingent on achieving certain clinical and regulatory milestones.

LimmaTech is a company developing vaccines targeting bacterial pathogens such as Staphylococcus aureus, Neisseria gonorrhoeae, and Chlamydia trachomatis. It is promoting the development of preventive vaccines in infectious disease areas where treatment options are shrinking due to rising antibiotic resistance.

LimmaTech’s proprietary platform targets toxins and superantigens that cause disease. It is characterized by its design to induce broad and durable immune responses against complex bacterial targets. Its lead program is LTB-SA7, a Staphylococcus aureus vaccine candidate. Staphylococcus aureus is considered a major causative pathogen of surgical site infections, and LTB-SA7 is currently in Phase I clinical development.

LimmaTech is also conducting preclinical-stage development of vaccines targeting additional bacterial pathogens. These include pathogens associated with infertility and long-term infectious sequelae that can disproportionately affect women. In a context of growing antibiotic resistance, there is attention on whether vaccine-based prevention strategies can reduce the treatment burden.

The size of the acquisition of The Vaccine Company is up to USD 1.55 billion (approximately KRW 2.33 trillion). Shareholders of The Vaccine Company may receive up to USD 1.55 billion in cash, including an upfront payment and additional amounts payable upon achieving specified clinical and commercial milestones.

The Vaccine Company develops viral vaccines based on its proprietary in vivo nanoparticle technology. This technology focuses on implementing an antigen expression mode that induces sustained immune responses seen in virus-like particle vaccines, while reducing the manufacturing burden associated with conventional production methods.

The Vaccine Company has a preclinical pipeline targeting a variety of viral pathogens. Its core program is an Epstein-Barr virus (EBV) vaccine candidate. The company is applying its technology to EBV and is developing a candidate containing five antigens, which is in preparation for a Phase I clinical trial.

EBV is a pathogen associated not only with infectious mononucleosis but also with multiple sclerosis and certain types of malignancies. If a preventive vaccine is developed, expectations are that it could help reduce not only acute infectious disease but also long-term neurological and oncologic sequelae that may arise after infection.

Lilly broadens its investment horizon to vaccines after GLP-1 boom

Lilly explained that these acquisitions reflect a strategic emphasis on preventing the root causes of infection rather than treating disease after onset. Infectious diseases continue to be a major global disease burden as they present as acute illnesses and can also lead to a range of health problems following primary infection.

In particular, the spread of antibiotic resistance, which is weakening the capacity to treat bacterial infections, is cited as another driver of increased investment in vaccines. The company judges that as the number of infectious diseases that are difficult to manage with existing antibiotic therapies alone rises, the need for preventive vaccines will inevitably grow.

Industry observers view Lilly’s acquisitions as a case of deploying capital accumulated from the boom in GLP-1 therapies to secure new pipelines. After rapidly expanding its presence in the obesity and diabetes treatment market, Lilly is widening its investment scope to anticancer drugs, immunotherapies, and infectious disease vaccines. As vaccines are an area where long-term pipeline value and public health demand must be considered alongside short-term revenue, this deal is seen as illustrating Lilly’s medium- to long-term portfolio realignment.

In the domestic biotech industry, attention is also focused on the follow-on effects of the Curevo acquisition. Curevo originated as GC Biopharma’s U.S. affiliate, and GC Biopharma has signed a contract manufacturing agreement to supply products after the commercialization of Amezosvatein. Depending on Lilly’s development and commercialization strategy, GC Biopharma’s potential role within the global vaccine manufacturing network is emerging as a key point to watch.

GC Biopharma has long cultivated its vaccine business around products such as influenza, varicella, and hepatitis B vaccines. R&D collaboration in the United States through Curevo has functioned as an important bridgehead for entry into the global vaccine market. With Curevo now becoming part of Lilly, there is likely to be continued interest in the direction of GC Biopharma’s CMO contract, future production volumes, and commercialization schedule.

This transaction is also significant in that it indicates the investment direction of big pharma in the global vaccine market is becoming clearer again. Following COVID-19, the vaccine market grew rapidly for a time, but as pandemic-driven demand receded, some companies began to adjust their vaccine businesses. Meanwhile, demand related to the links between infectious diseases and chronic sequelae, antibiotic resistance, and prevention needs associated with population aging continues to increase.

The pipelines of the three companies acquired by Lilly are also aimed at such demand. Curevo is developing a shingles vaccine that addresses high demand among older adults; LimmaTech is developing bacterial infection vaccines related to antibiotic resistance; and The Vaccine Company is developing viral vaccines such as EBV, which is associated with long-term sequelae. A key rationale is that Lilly, traditionally a treatment-focused pharmaceutical company, intends to reinforce its infectious disease response portfolio through preventive vaccines.

Lilly’s acquisition of the three vaccine companies demonstrates that the value of preventive medicine is re-emerging in the global pharmaceutical industry. In particular, with Curevo—formerly GC Biopharma’s U.S. affiliate—among the acquisition targets, interest is expected to grow in global collaboration models for Korean vaccine companies.

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