GSK has secured a substantial financial settlement worth $370 million from CureVac following the resolution of a patent dispute involving BioNTech and Pfizer over messenger ribonucleic acid vaccine technology. The London-based pharmaceutical company will also receive ongoing royalty payments on future mRNA vaccine sales in a deal that significantly strengthens its position in the evolving mRNA therapeutics landscape.
Settlement Terms and Financial Impact
Under the agreement, GSK will receive $320 million in cash, with the remaining $50 million reflecting changes to the company's existing licensing agreement with CureVac. Beginning in 2025, GSK will collect 1% royalties on US sales of Pfizer and BioNTech's influenza, COVID-19, and related combination mRNA vaccines.
The settlement also includes a "significant" reduction in royalties that GSK must pay on its own potential future mRNA influenza, COVID-19, and combination products. GSK stated that the upfront settlement amount will be recorded as other operating income in its third quarter 2025 financial results, while future royalty income will be included in both total and core results.
Strategic Partnership Background
GSK's entitlement to these payments stems from its licensing partnership with CureVac, established in 2020 for developing mRNA vaccines. The collaboration was restructured in July 2024, with GSK acquiring full rights to develop, manufacture, and commercialize mRNA candidate vaccines for influenza and COVID-19 globally, including combination products.
CureVac, a Tübingen, Germany-based biotechnology company, had been developing mRNA flu and COVID-19 vaccines with GSK before agreeing to be acquired by BioNTech in an all-stock transaction valued at approximately $1.25 billion in June 2024.
Broader Patent Resolution
The GSK settlement is part of a larger patent dispute resolution between CureVac and BioNTech that was settled on Thursday. The broader agreement includes a $740 million payment to CureVac and its partners, with CureVac receiving an additional $50 million from GSK for certain US product royalties.
Under the settlement terms, CureVac will grant a non-exclusive license to BioNTech and Pfizer for the manufacture and sale of mRNA COVID-19 and influenza products in the United States. This license will extend worldwide upon completion of BioNTech's acquisition of CureVac.
Additional Financial Opportunities
If BioNTech's acquisition of CureVac successfully closes, GSK stands to benefit further. The company would receive an additional $130 million in cash and 1% royalty payments on future sales outside the US by BioNTech and Pfizer. GSK would also benefit from reduced milestones and lower royalties on its own mRNA vaccine sales outside the United States.
The mRNA patent litigation between CureVac and BioNTech outside of the US will also be settled if the acquisition proceeds as expected, with regulatory approval still pending but anticipated to proceed without changes.
Market Response
Financial markets responded positively to the news, with GSK shares rising 1.1% to 1,398.50 pence in London trading on Friday morning. Pfizer closed up 1.3% at $24.23 in New York on Thursday, while BioNTech closed slightly higher at $111.35. CureVac ended 0.2% higher at $5.46 in New York and was up 0.7% to €4.70 in early Frankfurt trading on Friday.
