GlaxoSmithKline to Receive Up to $500M in Patent Settlement

GlaxoSmithKline (GSK) announced Friday that it could earn as much as $500 million following the resolution of high-profile patent disputes between German biotechnology companies CureVac and BioNTech. The settlement comes on the heels of BioNTech’s June announcement that it would acquire CureVac in a deal valued at approximately $1.25 billion.

Breakdown of GSK’s Settlement Earnings

According to GSK’s statement, the company will receive an immediate payment of $370 million and a 1% royalty on all U.S. sales of COVID-19 and influenza vaccines stemming from CureVac and BioNTech’s agreement to settle their litigation in the U.S. District Court for the Eastern District of Virginia.

GSK and CureVac’s Licensing Agreement

These payments arise from a prior licensing arrangement between GSK and CureVac. Under that agreement, announced last year, GSK secured full global rights to develop and manufacture mRNA vaccines, while CureVac was to receive €400 million upfront and up to €1 billion in additional milestone payments tied to development and sales.

Additional Earnings from German Patent Dispute

If the BioNTech-CureVac merger proceeds as planned, GSK will also benefit from the resolution of a related patent dispute in German court. In that case, the company stands to gain an additional $130 million and a 1% royalty on all BioNTech and Pfizer vaccine sales outside the United States.

Ongoing Legal Battles with Pfizer and Moderna

Despite these settlements, GSK stated it will continue pursuing patent infringement claims against Pfizer and BioNTech in both the U.S. and Europe. The company has also filed separate lawsuits against Moderna in Delaware federal court, alleging that key innovations used in Moderna’s COVID-19 vaccine were developed by researchers whose patents belong to GSK.

Law Firms Involved

CureVac is represented in the Virginia litigation by attorneys from Spotts Fain PC and Marshall, Gerstein & Borun LLP.

BioNTech and Pfizer are represented by Kaufman & Canoles PC, with BioNTech also retaining a large team from Paul Hastings LLP and Pfizer represented by counsel from White & Case LLP.

The Virginia case is CureVac SE et al. v. BioNTech SE et al., No. 2:23-cv-00222.

The related Delaware action involving Pfizer is GlaxoSmithKline Biologicals SA et al. v. Pfizer Inc. et al., No. 1:24-cv-00512.

The Moderna cases are GlaxoSmithKline Biologicals SA et al. v. Moderna Inc. et al., Nos. 1:24-cv-01135 and 1:24-cv-01136.