Biopharmaceutical company GSK plc (LON:GSK) (NYSE:GSK) announced on Friday that it will receive a USD370m upfront settlement following the resolution of mRNA patent litigation between German biopharmaceutical company CureVac N.V. (NASDAQ:CVAC) and biotechnology company BioNTech SE (NASDAQ:BNTX) in the United States.
The settlement includes USD320m in cash and the remainder tied to an amendment reducing royalties GSK owes on potential future mRNA influenza, COVID-19, and combination vaccines.
Under the agreement, GSK will also collect a 1% royalty on US sales of influenza, COVID-19, and related mRNA combination vaccines by BioNTech and US biopharmaceutical company Pfizer Inc (NYSE:PFE) from the start of 2025.
If BioNTech's planned acquisition of CureVac closes, the companies will settle related litigation outside the United States, triggering an additional USD130m payment to GSK and a 1% royalty on future ex-US sales of the same products. GSK would also benefit from reduced milestones and a reduction in royalties payable in respect of its own mRNA vaccine sales outside of the United States.
The upfront payment will be recorded as other operating income in GSK's Q3 2025 results, with royalty income included in total and core results going forward.
This agreement does not affect GSK's ongoing patent infringement litigation against Pfizer and BioNTech in the United States and Europe.
Concurrently, GSK agreed to tender its 16.6 million CureVac shares in BioNTech's upcoming offer.
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