LONDON (dpa-AFX) - British drug major GSK plc (GSK, GSK.L) announced Friday that it will receive an upfront settlement of $370 million from CureVac N.V. following the mRNA patent settlement reached between the companies.
GSK will also receive a 1 percent royalty in respect of US sales of influenza, COVID-19 and related combination mRNA vaccine products by BioNTech and Pfizer from the beginning of 2025.
These payments are due to GSK in accordance with the terms of its existing license agreement with CureVac.
Of the upfront settlement amount, $320 million will be in cash. The company noted that the remainder is attributed to the value of an amendment to GSK's existing agreement with CureVac. The 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.
GSK added that the mRNA patent litigation between CureVac and BioNTech outside of the US will also be settled if the pending acquisition of CureVac by BioNTech successfully closes. GSK would then be entitled to an additional $130 million in cash and 1 percent royalty payments in respect of future sales outside of the US by BioNTech and Pfizer.
The company would also 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 added that the settlement does not impact its enforcement of its own patents against Pfizer and BioNTech in the U.S. and in Europe. GSK will continue with its litigation against BioNTech and Pfizer for infringement of GSK's patents.
Simultaneously with the settlement, GSK has entered into a customary tender and support agreement under which it has agreed to tender its about 16.6 million CureVac shares in the upcoming offer.
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