Glaxosmithkline, which has major operations in Montgomery County, is set to receive a major settlement, writes Anthony O. Goriainoff for the Wall Street Journal.
The pharmaceutical powerhouse will $370 million from a U.S. patent settlement involving CureVac and BioNTech over mRNA-based COVID-19 vaccines.
Under its existing license agreement with CureVac, GSK will collect an upfront payment of $320 million, with the balance coming from an amended deal. The company will also earn a 1% royalty on future U.S. sales of influenza, COVID-19, and related combination mRNA vaccines made by BioNTech and Pfizer. The payment will be reported as other operating income in GSK’s third-quarter financial results.
The settlement stems from a broader $740 million resolution between CureVac and BioNTech/Pfizer to end all pending U.S. mRNA vaccine patent disputes involving GSK. Importantly, GSK says the agreement does not affect its own ongoing patent litigation against BioNTech and Pfizer in the United States and Europe.
BioNTech denies any wrongdoing, and the settlement does not include an admission of liability. Pfizer has not publicly commented.
GSK’s London shares rose 1.6% following the announcement, reflecting investor optimism.
Learn more about GlaxoSmithKline’s settlement in the Wall Street Journal.
