CureVac Settles Patent Dispute with Pfizer and BioNTech for $500 Million, GSK to Receive 1% Royalties

GSK is set to receive up to $500 million and 1% of royalties from future mRNA vaccine sales as part of a settlement between CureVac and Pfizer/BioNTech. The settlement comes as BioNTech completes its acquisition of CureVac. GSK will receive $370 million upfront and another $130 million on the closing of the acquisition. The settlement ends CureVac's litigation with Pfizer/BioNTech but does not affect GSK's ongoing litigation against them.

GSK (NYSE:GSK) is set to receive up to $500 million and 1% of royalties from future mRNA vaccine sales as part of a settlement between CureVac (NASDAQ:CVAC) and Pfizer (NYSE:PFE)/BioNTech (NASDAQ:BNTX). The settlement comes as BioNTech completes its acquisition of CureVac. GSK will receive $370 million upfront and another $130 million upon the closing of the acquisition [1].

Under the terms of the agreement, CureVac and GSK will receive a total payment of $740 million, with GSK's share being $370 million upfront and $130 million on the closing of the acquisition. Additionally, GSK will receive single-digit royalties on future U.S. sales of COVID-19 vaccines developed by BioNTech and Pfizer [1].

The settlement ends CureVac's litigation with Pfizer and BioNTech but does not affect GSK's ongoing litigation against them. GSK's involvement in the case is complicated and unrelated to the separate litigation it has brought against Pfizer and BioNTech over similar infringement claims [2].

The resolution does not constitute an admission of liability with respect to any allegation raised by CureVac or GSK. BioNTech stressed that the settlement does not "in any way constitute an admission of liability with respect to any allegation raised by CureVac or GSK," noting that it "expressly denies" all such claims [2].

References:
[1] https://seekingalpha.com/news/4482370-gsk-curevac-settle-patent-dispute-with-pfizer-biontech
[2] https://www.fiercepharma.com/pharma/gsk-collects-320m-biontech-pfizer-settle-mrna-patent-spat-curevac