No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - Drugmaker GSK said on Friday that it had reached a settlement, alongside CureVac, to resolve long-running patent litigation with BioNTech and Pfizer over mRNA-based COVID-19 vaccines.
The agreement, which includes a substantial upfront payment of $370m and future royalties, marks a significant step in monetising GSK's intellectual property portfolio.
Under the terms of the deal, CureVac and GSK will receive a combined $740m from BioNTech and Pfizer, along with single-digit royalties on future US sales of Covid-19 vaccines. CureVac will also receive an additional $50m from GSK for monetising part of its royalty stream under an existing licensing agreement.
GSK highlighted that the settlement includes a non-exclusive licence for BioNTech and Pfizer to manufacture and sell mRNA-based Covid-19 and influenza products in the US, which will expand globally following the completion of BioNTech's acquisition of CureVac.
GSK added that all pending litigation in the US has been dismissed, with a framework in place to resolve disputes elsewhere.
Reporting by Iain Gilbert at Sharecast.com
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.