B ionized Technology (Biontech) and Curevac engage in a legal disagreement over a patent issue.

B ionized Technology (Biontech) and Curevac engage in a legal disagreement over a patent issue.

In a significant development, BioNTech and CureVac, both German-based biotech companies, have reached a settlement agreement over their patent dispute regarding COVID-19 vaccine patents. This resolution brings an end to a multi-year patent litigation in the United States.

Under the terms of the settlement:

• BioNTech will pay CureVac and its British partner GlaxoSmithKline (GSK) a total of $740 million upfront.
• CureVac and GSK will receive ongoing single-digit royalties on U.S. sales of COVID-19 vaccines from BioNTech and Pfizer going forward.
• Separately, CureVac will make a $370 million upfront settlement payment to GSK.
• GSK will receive a 1% royalty on future U.S. sales of influenza, COVID-19, and related combination mRNA vaccine products by BioNTech and Pfizer.

The license granted by CureVac covers both COVID-19 and influenza products and is non-exclusive. It will initially be for the production and sale of these products in the U.S., and later globally.

It's worth noting that the settlement agreement does not involve any admission of guilt from BioNTech. BioNTech emphasized that the settlement is not an admission of guilt.

The settlement agreement was announced prior to the takeover of CureVac by BioNTech. A significant portion of the money paid as part of the settlement agreement will be returned to BioNTech after the takeover deal is completed. This license will be expanded to a global license after the completion of BioNTech's takeover of CureVac.

The settlement clears the path for BioNTech’s further mRNA vaccine development, including oncology, while allowing GSK to continue enforcing its patents in the U.S. and Europe.

This agreement ends pending litigation between the companies and reflects previous collaborations and licensing deals between GSK and CureVac dating to 2020, including a strategic partnership on mRNA vaccines and antibodies and a restructuring deal in 2024 valued around €1.45 billion ($1.69 billion).

The takeover of CureVac by BioNTech has not been completed at the time of the settlement agreement. The planned acquisition of CureVac by BioNTech (valued at $1.25 billion, closing in 2025) enables a framework to resolve ongoing patent disputes and entitles GSK to approximately $130 million plus 1% royalties from international sales after acquisition.

CureVac will also pay GSK $50 million as part of the settlement agreement.

This agreement pertains to the patent dispute over COVID-19 vaccine patents.

[1] GlaxoSmithKline and CureVac announce strategic partnership to develop and commercialise mRNA vaccines and antibodies [2] CureVac and GSK announce restructuring agreement [3] GSK and CureVac announce new strategic collaboration on mRNA vaccines and antibodies [4] BioNTech to Acquire CureVac for $4.4 Billion [5] BioNTech to Acquire CureVac for $4.4 Billion to Expand Its Vaccine Capabilities

1. The settlement agreement between BioNTech and CureVac, alongside GSK, includes a provision for BioNTech to pay a total of $740 million upfront, in addition to ongoing single-digit royalties on U.S. sales of their COVID-19 vaccines, signifying a significant financial commitment in the context of the business and technology sector.
2. The resolution of the patent dispute over COVID-19 vaccine patents between BioNTech and CureVac will pave the way for BioNTech to continue exploring mRNA vaccine development, particularly in the field of oncology, while allowing GSK to maintain its patent enforcement in the United States and Europe, underscoring the profound impact of technology on the pharmaceutical business landscape.

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