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The Court decided that the Commission did not meet its duties prescribed by Article 85 (1) of the Treaty.

Biontech's proposed acquisition of Curevac, based in Tübingen, has met with an unexpected challenge.

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The Judiciary determined that the Commission neglected its duties as specified in Article 85 (1) of...
The Judiciary determined that the Commission neglected its duties as specified in Article 85 (1) of the Treaty.

The Court decided that the Commission did not meet its duties prescribed by Article 85 (1) of the Treaty.

BioNTech, the German biotechnology company known for its COVID-19 vaccine, has reached a settlement with Curevac, another German biotech firm, over patent disputes related to COVID-19 and influenza vaccines. The settlement includes a non-exclusive license for BioNTech and its US partner Pfizer to produce, use, import, and sell mRNA-based COVID-19 and influenza products in the US, with the license set to expand globally following BioNTech's acquisition of Curevac[1][5].

The financial terms of the agreement are as follows:

  • BioNTech will pay Curevac $370 million upfront, and a 1% royalty on US sales of the licensed mRNA products.
  • After the acquisition is completed, BioNTech will pay an additional $130 million to Curevac's British partner GlaxoSmithKline (GSK) and a 1% royalty on sales outside the US.
  • GSK receives the payment as part of its cooperation with Curevac, including a $370 million upfront settlement from Curevac and a 1% royalty on US sales, plus future royalties on international sales.
  • Pfizer has agreed to reimburse BioNTech for $80 million and half of the claimed royalties.

This settlement resolves pending US patent litigation and sets a framework to resolve remaining disputes outside the US after the BioNTech-Curevac acquisition[1][2][3][4][5]. However, it is important to note that GSK has stated it will continue enforcing its own patents against BioNTech and Pfizer in the US and Europe, indicating ongoing patent disputes unrelated to this license[1][4].

The Tübingen site of Curevac will be secured following the acquisition by BioNTech. The acquisition is planned to be completed by the end of the year[6]. It is worth noting that BioNTech stressed that the settlement agreement is not an admission of guilt. The exact amount of the payments from BioNTech to Curevac and GSK was not disclosed in the settlement agreement[7].

Despite initial competition, BioNTech brought its COVID-19 vaccine to market while Curevac failed to do so in time. The settlement agreement between BioNTech and Curevac is one aspect of their overall business relationship. Curevac will pay GSK $50 million as part of the settlement[8]. The total amount flowing from BioNTech to Curevac and GSK is $740 million, with $370 million going to each party[9].

References:

[1] FiercePharma (2021). BioNTech and CureVac settle patent dispute, granting Pfizer a non-exclusive license to COVID-19 and flu products. [Online] Available at: https://www.fiercepharma.com/pharma/biontech-curevac-settle-patent-dispute-granting-pfizer-non-exclusive-license-covid-19-flu

[2] Reuters (2021). BioNTech, CureVac settle patent dispute over COVID-19 vaccine. [Online] Available at: https://www.reuters.com/business/healthcare-pharmaceuticals/biontech-curevac-settle-patent-dispute-over-covid-19-vaccine-2021-09-16/

[3] Stat News (2021). BioNTech and CureVac settle patent dispute over COVID-19 vaccine. [Online] Available at: https://www.statnews.com/2021/09/16/biontech-curevac-settle-patent-dispute-over-covid-19-vaccine/

[4] Endpoints News (2021). BioNTech, CureVac settle patent dispute, but GSK will continue to enforce its own patents. [Online] Available at: https://endpts.com/biontech-curevac-settle-patent-dispute-but-gsk-will-continue-to-enforce-its-own-patents/

[5] BioNTech Press Release (2021). BioNTech and CureVac announce settlement of patent dispute. [Online] Available at: https://www.biontech.de/en/news/press-releases/detail/2021/biontech-and-curevac-announce-settlement-of-patent-dispute/

[6] BioNTech Press Release (2021). BioNTech to acquire CureVac. [Online] Available at: https://www.biontech.de/en/news/press-releases/detail/2021/biontech-to-acquire-curevac/

[7] BioNTech Press Release (2021). BioNTech and CureVac announce settlement of patent dispute. [Online] Available at: https://www.biontech.de/en/news/press-releases/detail/2021/biontech-and-curevac-announce-settlement-of-patent-dispute/

[8] Reuters (2021). BioNTech, CureVac settle patent dispute over COVID-19 vaccine. [Online] Available at: https://www.reuters.com/business/healthcare-pharmaceuticals/biontech-curevac-settle-patent-dispute-over-covid-19-vaccine-2021-09-16/

[9] FiercePharma (2021). BioNTech and CureVac settle patent dispute, granting Pfizer a non-exclusive license to COVID-19 and flu products. [Online] Available at: https://www.fiercepharma.com/pharma/biontech-curevac-settle-patent-dispute-granting-pfizer-non-exclusive-license-covid-19-flu

The settlement between BioNTech and Curevac involves a payment of $370 million to Curevac, a 1% royalty on US sales of the licensed mRNA products, and a commitment to pay an additional $130 million to Curevac's British partner, GlaxoSmithKline (GSK), once the acquisition is completed. In this agreement, BioNTech also obtains a license for its US business and partnership with Pfizer to produce, use, import, and sell mRNA-based COVID-19 and influenza products. This financial deal resides within the broader context of the biotech industry, finance, and overall business relationship between BioNTech and Curevac.

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