Pharmaceutical company GSK secures a £372 million deal for COVID-19 vaccine collaboration
In a significant development, drugmaker GSK has reached a settlement worth up to £372 million over a patent dispute regarding Covid vaccines in the US. The dispute, which centers around mRNA vaccine technology, has been a key factor in the fight against Covid-19.
The patent dispute involves CureVac, BioNTech, Pfizer, and GSK. CureVac sued BioNTech in Germany in 2022 for allegedly infringing on patents related to mRNA technology used in BioNTech and Pfizer’s Comirnaty vaccine. This led to a complex global patent litigation scenario.
In 2025, the landscape shifted significantly when BioNTech announced plans to acquire CureVac. Subsequently, CureVac, BioNTech, and Pfizer reached an agreement to end their US patent litigation, and set frameworks to resolve other disputes ongoing outside the US, pending the acquisition's completion.
GSK, CureVac’s cooperation partner, also had ongoing patent disputes against BioNTech and Pfizer concerning mRNA vaccine technology. Under an existing license agreement with CureVac, GSK will receive an upfront settlement of around £275 million and a 1% royalty on US sales of influenza, Covid-19, and related combination mRNA vaccines by BioNTech/Pfizer from 2025 onward. The total payout related to these settlements, combining CureVac’s and GSK’s payments and royalties, amounts to approximately £740 million.
It's worth noting that CureVac's own mRNA Covid vaccine development did not succeed commercially. Moderna also had separate patent litigation against BioNTech/Pfizer, which a German court partially upheld in March 2025. mRNA vaccines differ from traditional vaccines by using genetic instructions for human cells to produce viral proteins directly, enabling faster development and scalable production.
The settlement effectively ends most of the active patent wars among these parties concerning mRNA Covid vaccines. Derren Nathan, at Hargreaves Lansdown, mentioned that GSK's shares rose 0.9% following the announcement of the settlement. Danni Hewson, analyst at AJ Bell, stated that the settlement gives GSK a modest, though still welcome, cash injection and the prospect of sales royalties.
GSK remains in dispute with Pfizer and BioNTech in the US and Europe over alleged infringement of patents. If BioNTech's takeover of CureVac goes ahead, GSK will also be paid an additional £97 million and royalties will be extended to non-US sales.
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References: 1. BioNTech to acquire CureVac 2. How mRNA vaccines work 3. GSK secures £370m settlement from BioNTech and Pfizer over Covid vaccine patent row 4. GSK secures £740m from BioNTech and Pfizer over Covid vaccine patent row 5. CureVac sues BioNTech over use of mRNA technology
Investing in the medical-conditions sector took a dramatic turn as GSK secured a substantial £372 million settlement with BioNTech and Pfizer regarding their patent dispute over mRNA vaccine technology, a crucial element in the health-and-wellness sector's battle against Covid-19. This resolution marks the end of most active patent wars among these parties, impacting the finance and business landscapes significantly. The settlement also includes a 1% royalty on US sales of influenza, Covid-19, and related combination mRNA vaccines by BioNTech/Pfizer from 2025 onward, providing GSK with potential long-term profits.
