BioNTech Enters Settlement Agreements with US NIH and University of Pennsylvania Over COVID-19 Vaccine Royalties
BioNTech, the German company responsible for the development of the COVID-19 vaccine with partner Pfizer, has entered into two separate settlement agreements with the US National Institutes of Health (NIH) and the University of Pennsylvania (Penn) regarding payment of royalties related to its COVID-19 vaccine.
According to company filings, BioNTech will pay $791.5 million to the NIH to resolve a default notice, and separately, it will pay $467 million to Penn to settle a lawsuit accusing it of underpaying royalties. The company will also reimburse Pfizer for up to $170 million of royalties payable to Penn and $364.5 million of royalties paid to the NIH for 2020-2023 vaccine sales.
The settlements also include a framework for a license to use NIH and Penn’s patents in combination products, and the agreements do not constitute an admission of liability in either case, according to the company. The company will pay a low single-digit percentage of its vaccine net sales to both the NIH and Penn under the amended license agreements.