GSK, CureVac to receive $740M as COVID vaccine patent dispute with Pfizer, BioNTech settled

CureVac (NASDAQ:CVAC) announced on Friday that the company and its partner, GSK (NYSE:GSK), are set to receive $740M and other payments, as Pfizer (NYSE:PFE) and BioNTech (NASDAQ:BNTX) have agreed to resolve a patent dispute related to messenger-RNA-based COVID vaccines in the U.S.

The settlement will “resolve and dismiss all pending patent litigation in the United States between the companies related to mRNA-based COVID-19 vaccines,” the German vaccine maker said.

It also outlines a plan to resolve ex-U.S. patent disputes subject to the completion of BioNTech’s (NASDAQ:BNTX) recently announced acquisition of CureVac (NASDAQ:CVAC).

According to the deal terms, CureVac (NASDAQ:CVAC) and GSK (NYSE:GSK) are eligible for a $740M payment and single-digit royalties on future U.S. sales of COVID-19 vaccines developed by BioNTech (NASDAQ:BNTX) and Pfizer (NYSE:PFE).

In exchange, BioNTech (BNTX) and Pfizer (NYSE:PFE) will receive a non-exclusive license related to the sale, production, and import of mRNA-based COVID and influenza products in the U.S. It will be a global non-exclusive license pending BioNTech’s (BNTX) acquisition of CureVac (CVAC).

Having partnered with CureVac (CVAC) in 2020 to develop mRNA vaccines for infectious diseases, GSK (NYSE:GSK) announced that it would receive a $370M upfront payment as part of the settlement.

Additionally, starting from 2025, the British drugmaker will be eligible for a 1% royalty related to U.S. sales of influenza, COVID-19, and related combination mRNA vaccine products developed by BioNTech (BNTX) and Pfizer (PFE).

Once the ex-U.S. patent litigations are settled, the company will receive a $130M additional payment and a similar royalty rate related to the sale of mRNA-based products developed by BioNTech (BNTX) and Pfizer (PFE) outside the U.S.

GSK (GSK) expects to record the settlement amounts in Q3 2025 under the other operating income. The royalty income will be recorded under total and core results in the income statements. In connection with the deal, GSK (GSK) has agreed to tender nearly 16.6M CureVac (CVAC) shares as part of BNTX’s buyout offer.