GSK set to get $500 million from settlement of mRNA lawsuit

CureVac NV has settled a long-running patent dispute over mRNA vaccines with Pfizer and BioNTech SE in the US, which will see CureVac's former collaborator GSK receive as much as $500 million and 1% of royalties from future vaccine sales.

The settlement comes as BioNTech looks to close the purchase of its former rival CureVac for about $1.25 billion. GSK will receive $370 million upfront, with another $130 million on the closing of the acquisition.

In the wake of the race to develop Covid-19 vaccines, drugmakers launched multiple lawsuits against one another over alleged patent infringement. The litigation has spanned across Europe and the US, pitting rival vaccine manufacturers against one another in the courts.


GSK worked with CureVac to develop Covid-19 vaccines but they failed, losing out to quicker, nimbler rivals. Last year, the two companies restructured their collaboration, with GSK paying CureVac up to $1.4 billion for the full rights to mRNA flu and Covid-19 vaccines it was developing with the German biotech.

GSK will also receive 1% on royalties of future Pfizer-BioNTech sales of flu, Covid-19 and related combination mRNA vaccines in the US. Once BioNTech completes the purchase of CureVac, GSK will also receive 1% of royalties from future sales outside the US.

While the settlement ends CureVac's litigation with Pfizer and BioNTech, it doesn't mean the same for GSK. The British drugmaker said it will continue its litigation against BioNTech and Pfizer for what it alleges is infringement of its patents.