GSK Reaches $500M Agreement Over Covid-19 Jab Patent Row

GSK has reached an agreement with CureVac, resolving a patent dispute related to Covid-19 jabs. The British drugmaker will receive $370 million upfront and future royalties, plus an additional $130 million when BioNTech completes the purchase of CureVac for $1.25 billion. This deal is a boost for GSK's CEO Emma Walmsley, who is battling to revive vaccine sales.

British pharmaceutical giant GSK plc (GSK, GSK.L) has announced a significant milestone in its ongoing patent disputes, reaching an agreement with CureVac N.V. (CVAC) to settle a long-standing mRNA vaccine-related litigation. Under the terms of the settlement, GSK will receive an upfront payment of $370 million, along with future royalty payments on sales of influenza, COVID-19, and combination mRNA vaccine products. Additionally, GSK will be entitled to an extra $130 million upon the completion of BioNTech's acquisition of CureVac, scheduled to close in the near future [1].

The agreement, which aligns with GSK's existing license agreement with CureVac, includes a reduction in royalties for potential future mRNA influenza, COVID-19, and influenza/COVID-19 combination products. This settlement does not impact GSK's ongoing patent enforcement against Pfizer and BioNTech in the U.S. and Europe. Simultaneously, GSK has agreed to tender its approximately 16.6 million CureVac shares in the upcoming offer [1].

CureVac, a pioneering biotech company specializing in mRNA technology, has also reached a settlement with BioNTech and Pfizer, resolving their patent dispute related to mRNA-based COVID-19 vaccines. Under this agreement, CureVac and GSK will collectively receive $740 million in payments, along with single-digit royalties on future U.S. sales of COVID-19 vaccines. CureVac will also grant BioNTech and Pfizer a non-exclusive license to manufacture, use, import, and sell mRNA-based COVID-19 and influenza products in the U.S. [2].

The settlements are a strategic move for GSK, which has been seeking to bolster its vaccine portfolio. The upfront payment and future royalty streams are expected to provide financial support for GSK's CEO Emma Walmsley as she works to revive the company's vaccine sales. The agreements also reflect the growing importance of mRNA technology in the global healthcare landscape, with several companies vying for a share of the market.

References:
[1] https://www.nasdaq.com/articles/gsk-get-370-mln-upfront-payment-curevac-mrna-patent-settlement
[2] https://www.curevac.com/en/curevac-announces-resolution-of-patent-litigation-with-pfizer-biontech/