Drugmaker GSK will be paid up to £372m after settling a patent row over Covid vaccines in the US.
The London-listed pharmaceuticals giant – previously known as Glaxosmithkline – and German partner CureVac reached an agreement with rivals BioNTech and Pfizer.
The tussle had centred on the development of mRNA jab technology, which was at the forefront of the fight against Covid-19.
The settlement of the long-running dispute comes two months after BioNTech agreed to buy its domestic peer CureVac in a £930m deal.
In 2022, CureVac filed a patent lawsuit against BioNTech over its use of mRNA technology, seeking compensation for alleged infringement of its intellectual property rights.
GSK’s share of the settlement payment is £275m and it will get 1 per cent of the royalties from the vaccine sales in the US from the beginning of 2025.
If BioNTech’s takeover of CureVac goes ahead, GSK, led by chief executive Emma Walmsley, will also be paid a further £97m and royalties will be extended to non-US sales.
Drugmakers launched several lawsuits over alleged patent infringement in relation to their Covid vaccines.
CureVac said that, under the terms of the settlement, it would grant BioNTech and Pfizer a licence to make, use, and sell mRNA-based Covid and flu jabs. GSK remains in dispute with Pfizer and BioNTech in the US and Europe over alleged infringement of patents. Shares in GSK rose 0.9 per cent, or 12.5p, to 1395.5p.
Danni Hewson, analyst at AJ Bell, said: ‘The dispute gives GSK a modest, though still welcome, cash injection and the prospect of sales royalties.’
Derren Nathan, at Hargreaves Lansdown, said: ‘Today’s rise hasn’t quite clawed back all losses seen in the stock over the last month as concerns about tariffs and US vaccine policy continue to circle. But with full-year guidance nudged up to the top end of guidance in the latest earnings release, GSK looks to be in good health.’
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