BioNTech ends patent fight with mRNA rival CureVac ahead of buyout deal

Dive Brief:

• BioNTech on Friday said it will pay as much as $870 million, plus a royalty stream, to CureVac and partner GSK to settle claims that it infringed on CureVac patents in developing the first approved COVID-19 vaccine, Comirnaty.
• Under the settlement agreement, BioNTech, which is in the middle of acquiring CureVac in an all-stock deal, will pay GSK $370 initially and another $130 million once the buyout closes. CureVac will also receive a $370 million payout, and both it and GSK are eligible for 1% royalties on products covered by CureVac’s patents. 
• BioNTech’s partner Pfizer, meanwhile, will cover $80 million of the settlement payouts and half of the future royalties promised to GSK for COVID-19 vaccine sales specifically. The royalties flowing to CureVac and GSK will apply to all sales from Jan. 1, 2025 onward.

Dive Insight:

BioNTech said settling the patent litigation, which has been ongoing since 2022, will allow it to “focus on the execution of its strategy and its priority programs, including mRNA-based product candidates.” 

The settlement eliminates a scheduled trial in a Virginia court over CureVac’s patent infringement claims. As part of the agreement, CureVac, BioNTech and Pfizer have all filed documents seeking dismissal of the case. Legal wranglings were also underway in Germany, as in May, the European Patent Office upheld two CureVac patents, setting the stage for a trial in Dusseldorf. 

Wall Street analysts saw BioNTech’s offer to buy CureVac in June as a way of heading off bigger payouts in the event it lost in court. Some estimated those payments might reach as much as $3 billion.

The agreement grants BioNTech and Pfizer a non-exclusive license to sell mRNA COVID-19 and influenza vaccines in the U.S. until the close of the CureVac acquisition, at which point they’ll be cleared to do so globally.

CureVac was an early player in the race to develop a COVID-19 vaccine when the pandemic took hold in 2020. The U.S. government was even rumored to be bidding for the company or its research, an allegation the company denied. CureVac’s shot, however, wasn’t effective enough in testing, prompting the company to end development and change course.

The acquisition, estimated to be worth $1.25 billion, is expected to close by the end of 2025.

This post has been syndicated from a third-party source. View the original article here.