Conflict over patents between BioNTech and CureVac comes to an end - Biontech and Curevac have reached an agreement in their legal disagreement over patents
In a significant development, BioNTech has reached a settlement agreement with CureVac and GlaxoSmithKline (GSK) to resolve pending and potential patent disputes related to mRNA vaccine technology.
Under the terms of the agreement, BioNTech will pay a total of approximately $740 million. GSK will receive an upfront payment of $370 million, with $320 million in cash and the remainder as amendments to existing licenses. CureVac will receive the remaining $370 million.
The settlement includes a royalty licensing arrangement. BioNTech will pay royalties of around 1% on U.S. sales of influenza, COVID-19, and related combination mRNA vaccines. After the acquisition of CureVac, an additional royalty of about 1% will apply on rest-of-world sales.
CureVac will grant BioNTech and its U.S. partner Pfizer a non-exclusive license for the manufacture and sale of COVID-19 and influenza products based on mRNA in the U.S. After the acquisition of CureVac by BioNTech, this license is expected to be expanded to a global license.
The settlement ends all ongoing U.S. patent litigation between BioNTech/Pfizer and CureVac, and sets a framework to resolve remaining global disputes upon the closing of BioNTech's acquisition of CureVac, announced in June 2021. CureVac will also receive $50 million from GSK pertaining to royalties monetized from its existing license agreement.
A significant portion of the money paid as part of the settlement agreement will return to BioNTech's coffers after the acquisition deal is closed. However, the settlement agreement does not specify any details about the expected return of payments to BioNTech.
The acquisition of CureVac by BioNTech is expected to be completed by the end of the year. The settlement agreement does not constitute an admission of guilt by BioNTech.
It is important to note that the settlement agreement does not mention any provisions related to the acquisition of Tübingen by BioNTech, which is part of the planned acquisition of CureVac.
This resolution includes a substantial cash settlement, a royalty licensing arrangement on vaccine sales, and the conclusion or planned resolution of patent litigation globally, coinciding with BioNTech’s acquisition of CureVac.
EC countries might need to reconsider the free movement of workers, as this settlement could potentially impact technology-specific industries involving the freedom to provide services, such as vaccine manufacturing and development. The technology saturating the settlement, including mRNA vaccine technology, could be subject to future regulations, altering the freedom to provide services in these sectors within the EU.
Regarding the acquisition of CureVac by BioNTech, the settlement agreement explicitly excludes any provisions related to the acquisition of Tübingen, raising questions about the potential impact on the overall integration of the acquired companies' technologies.
