GSK PLC (LSE:GSK, NYSE:GSK) will receive an upfront payment of $370 million from CureVac, following a patent settlement involving BioNTech and Pfizer over messenger ribonucleic acid (mRNA) vaccine technology.
The deal will also see GSK collect a 1% royalty on United States sales of Pfizer and BioNTech’s influenza, COVID-19, and related combination mRNA vaccines from the start of 2025.
Of the settlement, $320 million will be paid in cash, with the remainder reflecting changes to GSK’s existing licence agreement with CureVac.
The revised deal lowers the royalties GSK would owe on any of its own future mRNA vaccines for flu and COVID-19.
The agreement comes after CureVac and BioNTech settled their mRNA patent litigation in the United States earlier this week.
GSK’s entitlement stems from its licensing partnership with CureVac, which has been developing mRNA vaccines as part of its pipeline.
GSK may receive a further $130 million in cash and additional royalties if BioNTech’s planned takeover of CureVac is completed, settling outstanding litigation outside the US.
The company would also benefit from lower future milestone payments and royalties owed on its own mRNA vaccine sales in other markets.
GSK said the upfront settlement will be booked as other operating income in the third quarter of 2025, while future royalty income will be recognised in the main results. The group will continue its separate litigation against Pfizer and BioNTech in the US and Europe.
mRNA vaccines use a strand of genetic code to instruct cells to produce an immune response, and played a major role in the global response to the COVID-19 pandemic.