Drug maker GSK has secured a payment of up to 500 million dollars (£372 million) after a patent row over Covid vaccines was settled in the US.
GSK told investors it will receive a 370 million dollar (£275 million) settlement from CureVac, which it had worked with on the development of mRNA vaccine technology.
The London-based business will then be entitled to receive an additional 130 million dollars (£97 million) depending on if a planned takeover of CureVac by BioNTech closes, which would settle a lawsuit outside of the US.
CureVac – a German pharmaceutical company – settled a long-running patent dispute with rival BioNTech and Pfizer in the US on Thursday.
Drug makers had launched several lawsuits over alleged patent infringement in relation to their Covid-19 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 influenza jabs.
The firms also agreed that GSK would take 1% of the royalties from the vaccine sales in the US from the beginning of 2025.
The cash payment to GSK stems from its partnership with CureVac which was first struck in 2020.
GSK remains in dispute with Pfizer and BioNTech in the US and Europe over alleged infringement of its own patents.
Shares in GSK rose by as much as 1.7% on Friday morning.
Danni Hewson, head of financial analysis for AJ Bell, said: “Pharmaceutical giant GSK was also among the gainers on Friday morning as it secured a positive outcome from the settlement of a patent dispute involving CureVac with which it has a licence agreement.
“The dispute related to mRNA vaccines and gives GSK a modest, though still welcome, cash injection and the prospect of sales royalties.”
