GSK wins settlement, future royalties in CureVac mRNA patent dispute
GSK PLC on Friday said it will receive an upfront payment of $370 million from CureVac BV, following a patent settlement involving BioNTech SE and Pfizer Inc over messenger ribonucleic acid vaccine technology.
The deal also will see the London-based pharmaceuticals firm collect a 1% royalty on US sales of Pfizer and BioNTech’s influenza, Covid-19, and related combination mRNA vaccines from the start of 2025.
Of the upfront settlement, $320 million will be paid in cash, with the remainder reflecting changes to GSK’s existing licence agreement with CureVac.
CureVac is a Tubingen, Germany-based biotechnology company that had been developing mRNA flu and Covid-19 shots with GSK. It is being taken over by Mainz, Germany-based peer BioNTech.
The amended deal includes a ‘significant’ reduction in royalties to be paid by GSK on potential future mRNA influenza, Covid-19 and influenza/Covid-19 combination products.
The agreement comes after CureVac and BioNTech on Thursday settled their mRNA patent litigation in the US.
BioNTech and New York-based pharmaceuticals firm Pfizer collaborate in the development and distribution of a Covid-19 mRNA vaccine.
In June, BioNTech agreed to buy CureVac in an all-stock transaction for around $1.25 billion.
GSK’s entitlement arises from its licensing partnership with CureVac, which has been developing mRNA vaccines as part of its pipeline.
The partnership stems from an agreement struck between the two firms in 2020.
In July 2024, the pact was restructured with GSK acquiring full rights to develop, manufacture and commercialise globally mRNA candidate vaccines for influenza and Covid-19, including combinations.
If the acquisition of CureVac by BioNTech successfully closes, the mRNA patent litigation between CureVac and BioNTech outside of the US will also be settled.
If so, GSK would then be entitled to an additional $130 million in cash and 1% royalty payments in respect of future sales outside of the US by BioNTech and Pfizer.
GSK also would benefit from reduced milestones and a reduction in royalties payable in respect of GSK sales of mRNA influenza, Covid-19 and influenza/Covid-19 combination products outside of the US.
GSK said the upfront settlement amount will be recorded as other operating income in its financial results as an adjusting item in the income statement in the third quarter of 2025. The 2025 and future royalty income will be recorded in total and core results in the income statements.
Shares in GSK rose 1.1% to 1,398.50 pence each in London on Friday morning. Pfizer closed up 1.3% at $24.23 in New York on Thursday, Also in New York, BioNTech closed up slightly at $111.35 and CureVac ended 0.2% higher at $5.46. In Frankfurt early Friday, CureVac was up 0.7% to €4.70.
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