BioNTech Settles Patent Dispute with CureVac, Paving Way for Acquisition

BioNTech has reached a settlement agreement with CureVac and GlaxoSmithKline (GSK) over patent infringement claims related to mRNA technology used in COVID-19 vaccines. The deal, which involves substantial payouts and ongoing royalties, comes as BioNTech moves forward with its planned acquisition of CureVac.

Settlement Terms and Financial Impact

Under the terms of the settlement, BioNTech will make initial payments totaling $870 million to CureVac and GSK. The company will pay $370 million to each party, with GSK receiving an additional $130 million upon the closure of BioNTech's acquisition of CureVac. Pfizer, BioNTech's partner in the development of the Comirnaty COVID-19 vaccine, will contribute $80 million towards the settlement costs.

In addition to the upfront payments, BioNTech and Pfizer have agreed to pay a 1% royalty on future sales of products covered by CureVac's patents, effective from January 1, 2025. This royalty arrangement will apply to both U.S. and global sales, depending on the closure of the acquisition deal.

Implications for mRNA Technology Licensing

The settlement grants BioNTech and Pfizer a non-exclusive license to manufacture, import, and sell mRNA-based prophylactics in the United States. This license will expand globally upon the completion of BioNTech's acquisition of CureVac, which is valued at approximately $1.25 billion and expected to close by the end of 2025.

GSK, which had intervened in the patent litigation due to concerns about CureVac's pursuit of the case following the acquisition announcement, will benefit from a significant reduction in royalties payable to CureVac on potential future mRNA vaccines for flu, COVID-19, or combination products.

Ongoing Patent Disputes in the mRNA Space

While this settlement resolves the litigation between CureVac and BioNTech, it does not affect separate patent infringement cases in the mRNA vaccine sector. GSK continues to pursue its own patent litigation against Pfizer and BioNTech, filed in Delaware federal court, alleging infringement of five patents related to mRNA vaccine technology.

The mRNA patent landscape remains complex, with ongoing disputes involving other major players such as Moderna, which has filed suit against Pfizer and BioNTech. These legal battles underscore the significant value and competitive importance of mRNA technology in the pharmaceutical industry.