Biontech and Curevac engage in a legal battle over intellectual property rights
BioNTech, Curevac, and GlaxoSmithKline (GSK) have reached a significant agreement that resolves their patent dispute over COVID-19 vaccine patents, marking a milestone in the ongoing battle against the pandemic.
The settlement, announced ahead of BioNTech's acquisition of Curevac, involves a total of $740 million in payments from BioNTech and its partner Pfizer to Curevac and GSK. The amount will be split equally between the two companies.
Under the terms of the agreement, BioNTech will pay Curevac $370 million upfront and a 1% royalty on U.S. sales of its COVID-19 mRNA vaccine, starting from January 1, 2025. BioNTech will also pay another 1% royalty on rest-of-world sales after the acquisition of Curevac is completed. GSK, which is partnered with CureVac, will receive $370 million upfront and a 1% royalty on U.S. sales of influenza, COVID-19, and related combination mRNA vaccines from BioNTech and Pfizer.
Pfizer will reimburse BioNTech $80 million and half of the claimed royalties related to the settlement. Curevac will pay GSK $50 million as part of the settlement.
The license granted by Curevac to BioNTech and Pfizer covers COVID-19 and influenza products based on mRNA technology. The license is non-exclusive, meaning other companies can still hold similar licenses. After the completion of BioNTech's acquisition of Curevac, the license will be expanded to a global license.
The settlement ends the U.S. patent litigation concerning mRNA vaccine patents between these companies, providing financial compensation and ongoing royalties to CureVac and GSK while granting BioNTech and Pfizer licenses to continue manufacturing and selling their vaccines.
Despite this settlement, GSK stated that it will continue its own patent enforcement actions against BioNTech and Pfizer in the U.S. and Europe independently.
This development comes after a period of intense competition between BioNTech and Curevac in the race for a COVID-19 vaccine during the pandemic. While BioNTech brought its vaccine to market and made billions, Curevac failed to bring a vaccine to market in time. In the past, Curevac demanded a share of the revenues and claimed that a series of its intellectual property rights had been infringed.
The settlement agreement does not constitute an admission of guilt. It aims to establish a framework to resolve international disputes after BioNTech’s acquisition of CureVac closes.
References:
- BioNTech, CureVac, and GSK Reach Settlement in COVID-19 Vaccine Patent Dispute
- BioNTech to Pay CureVac $370 Million, 1% Royalties in Settlement
- GSK to Receive $370 Million from CureVac as Part of Settlement
- Pfizer to Reimburse BioNTech $80 Million as Part of Settlement
The settlement agreement between BioNTech, Curevac, and GSK offers financial compensation of $740 million, primarily in the form of upfront payments, to Curevac and GSK. This settlement, preceding BioNTech's acquisition of Curevac, also includes ongoing royalties on sales of COVID-19 vaccines and related influenza vaccines.
Furthermore, the agreement includes a license for mRNA technology, covering both COVID-19 and influenza products, which will be expanded to a global license post-acquisition. Both parties have agreed that this settlement does not constitute an admission of guilt, instead aiming to provide a resolution framework for international disputes.
