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COVID-19 Jab Manufacturer To Pay Over $1 Billion In Vaccine Royalties In Separate Settlement Agreements


German company BioNTech, who partnered with Pharma giant Pfizer to manufacturer an mRNA COVID-19 jab, has entered into separate settlement agreements over the payment of royalties related to its experimental shot.

The biotechnology company will pay $791.5 million to the U.S. National Institutes of Health (NIH).

In a separate agreement, it will pay $467 million to the University of Pennsylvania.

The University of Pennsylvania brought a lawsuit against the vaccine maker, accusing it of underpaying royalties.

BioNTech entered the settlement agreement to dismiss the lawsuit.

DW reports:

BioNTech has taken the license for certain patents from the NIH, among other entities, due to which the US government is owed certain royalty payments.

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Penn’s lawsuit said that BioNTech received a sublicense to the school’s technology through another company in 2017, which it later used to develop the vaccine, Comirnaty, with Pfizer.

The BioNTech/Pfizer jab was the first COVID-19 vaccine to be authorized by a stringent regulatory authority for emergency use and the first to be approved for regular use.

Per Reuters:

BioNTech said partner Pfizer will reimburse it for up to $170 million of the royalties payable to Penn and $364.5 million of the royalties paid to the National Institutes of Health (NIH)for 2020-2023 vaccine sales.

NIH and Penn did not immediately respond to requests for comment.

The U.S. government is owed royalty payments under the terms of the license BioNTech has taken for certain patents owned by the NIH, among other entities.

Penn’s lawsuit had said BioNTech owes the school a greater share of its worldwide vaccine sales for using “foundational” messenger RNA (mRNA) inventions developed by Penn professors and Nobel Prize winners Katalin Kariko and Drew Weissman.

The company also amended its license agreements with both NIH and Penn, agreeing to pay a low single-digit percentage of its vaccine net sales to both the entities.

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This is a Guest Post from our friends over at 100 Percent Fed Up.

View the original article here.



 

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