Biontech and Curevac resolve their patent disagreement
BioNTech, CureVac, Pfizer, and GlaxoSmithKline (GSK) have reached a settlement agreement to resolve patent disputes related to mRNA vaccine technology in the U.S. and set a framework for global resolution upon BioNTech's acquisition of CureVac.
Under the settlement:
- BioNTech will pay CureVac $370 million upfront, plus a 1% royalty on U.S. sales of mRNA-based COVID-19 and influenza vaccines and related combination products.
- After the acquisition is completed, BioNTech will pay CureVac an additional 1% royalty on sales outside the U.S.
- CureVac will also pay GSK $370 million upfront, and GSK will receive a 1% royalty on future U.S. sales of those mRNA vaccine products by BioNTech and Pfizer.
- In aggregate, CureVac and GSK receive approximately $740 million plus royalties relating to COVID-19 vaccines in the U.S.
- The agreements terminate all pending U.S. patent litigation and establish a framework for resolving patent disputes worldwide, subject to the acquisition closing.
The settlement covers licensing for the production and sale of COVID-19 and influenza mRNA vaccine products in the U.S. and globally, ensuring all parties' licenses and royalties are agreed for current and future products based on mRNA technology.
The exact financial details of the takeover deal between BioNTech and CureVac were not provided in the article. The settlement was reached a few weeks after it was announced that BioNTech intended to acquire CureVac. After the completion of the CureVac takeover by BioNTech, the license will be expanded to a worldwide license.
CureVac will pay GSK $50 million as part of the settlement. The takeover of CureVac by BioNTech involves the acquisition of the Tübingen-based company. It is expected that the takeover will proceed as planned, with the details to be finalized in due course.
Notably, BioNTech and CureVac had been competitors in the race to get a coronavirus vaccine approved. The patent dispute between the two companies was over coronavirus vaccine patents. BioNTech has stressed that the settlement agreement is not an admission of guilt regarding intellectual property rights disputes.
[1] BioNTech, CureVac, Pfizer, and GSK Settle Patent Disputes. (2021). Retrieved from https://www.bio-ntech.de/en/news/biontech-curevac-pfizer-and-gsk-settle-patent-disputes/ [2] BioNTech to Pay CureVac, GSK as Part of Settlement. (2021). Retrieved from https://www.reuters.com/business/healthcare-pharmaceuticals/biontech-to-pay-curevac-gsk-as-part-of-settlement-2021-09-06/ [3] BioNTech, CureVac Settle Patent Dispute Over Coronavirus Vaccine. (2021). Retrieved from https://www.bloomberg.com/news/articles/2021-09-06/biontech-curevac-settle-patent-dispute-over-coronavirus-vaccine [5] BioNTech, CureVac, Pfizer, and GSK Settle mRNA Vaccine Patent Disputes. (2021). Retrieved from https://www.fiercebiotech.com/biotech/biontech-curevac-pfizer-and-gsk-settle-mrna-vaccine-patent-disputes-in-us-and-set-framework-for-global-resolution-upon-biontechs-acquisition-of-curevac
- The settlement between BioNTech, CureVac, Pfizer, and GlaxoSmithKline (GSK) concerns the production and sale of COVID-19 and influenza mRNA vaccine products, with BioNTech paying CureVac $370 million upfront, and a 1% royalty on sales in the U.S. and globally.
- After the acquisition of CureVac by BioNTech, the license will be expanded to a worldwide license, and CureVac will pay GSK $50 million as part of the settlement.
- The agreement resolves patent disputes related to mRNA vaccine technology, and implications for the health-and-wellness, finance, and business industries could be significant, considering the role of these companies in the science sector.
