BioNTech Settles Royalties Dispute with NIH and University of Pennsylvania

BioNTech has reached two separate settlement agreements to resolve royalty payment disputes over its COVID-19 vaccine. The German biotech company, in collaboration with Pfizer, said it will pay $791.5 million to the U.S. National Institutes of Health (NIH) to address a default notice. Additionally, BioNTech will pay $467 million to the University of Pennsylvania (Penn) to settle a lawsuit alleging underpayment of royalties.

The agreements stem from the NIH’s and Penn’s claims to royalties linked to foundational patents used in the mRNA technology behind the COVID-19 vaccine. Pfizer, BioNTech’s partner in the vaccine’s development, has agreed to reimburse BioNTech for part of the settlement costs—up to $170 million for Penn’s royalties and $364.5 million for NIH royalties from 2020-2023 vaccine sales.

The settlements also involve amendments to BioNTech’s licensing agreements with both NIH and Penn, with BioNTech agreeing to pay a low single-digit percentage of its vaccine sales. The agreements also include provisions for future licensing to use NIH and Penn’s patents in combination products.

Neither party admitted liability in the settlements. NIH and Penn did not respond to requests for comment.