CureVac Settles Patent Dispute With Pfizer, BioNTech, GSK Receives $5 Billion

CureVac NV, a biotechnology company, has reached a settlement agreement with Pfizer and BioNTech over a long-standing patent dispute related to mRNA vaccines. This resolution will see CureVac's former partner, GlaxoSmithKline (GSK), receive up to $5 billion in compensation, along with a 1% royalty on future vaccine sales. The settlement comes at a time when BioNTech is seeking to acquire CureVac for approximately $12.5 billion. Under the terms of the agreement, GSK will initially receive a prepayment of $3.7 billion, with an additional $1.3 billion to be paid upon completion of the acquisition.

The dispute arose during the intense race to develop a COVID-19 vaccine, with pharmaceutical companies filing multiple lawsuits alleging patent infringement. These legal battles spanned across Europe and the United States. GSK had previously collaborated with CureVac on developing a COVID-19 vaccine but ultimately failed to succeed against more agile competitors. Last year, the two companies restructured their partnership, with GSK agreeing to pay CureVac up to $14 billion for the rights to mRNA influenza and COVID-19 vaccines developed by the German biotech firm.

In addition to the financial compensation, GSK will also receive a 1% royalty on the future sales of mRNA influenza, COVID-19, and related combination vaccines sold by Pfizer-BioNTech in the United States. Once BioNTech completes its acquisition of CureVac, GSK will also receive a 1% royalty on sales outside the United States. Despite this settlement ending the legal disputes between CureVac and Pfizer and BioNTech, GSK has indicated that it will continue to pursue legal action against BioNTech and Pfizer for alleged patent infringements.

This settlement marks a significant development in the ongoing patent disputes within the pharmaceutical industry. The resolution not only provides financial relief to GSK but also ensures that the company will continue to benefit from future vaccine sales. The acquisition of CureVac by BioNTech, if completed, will further consolidate the mRNA vaccine market, potentially leading to more innovative developments in the field. However, GSK's decision to continue pursuing legal action against BioNTech and Pfizer suggests that the patent disputes are far from over, and the industry may continue to see legal battles in the coming years.