GSK Gains from mRNA Patent Settlement Amidst Market Downturn

GSK (LON:GSK) is set to receive a substantial financial boost from the mRNA patent settlement between CureVac and BioNTech, even as its shares face downward pressure.

The company will receive $370 million upfront, alongside future royalties, offering a silver lining amidst a challenging market environment.

Shares in GSK are currently trading at 1,405p, up 1.6% on Friday. However, it is down 2.8% in the last six months and 9.4% in the last 12 months. The decline potentially reflects some investor apprehension regarding GSK's near-term performance. Even so, the stock is up 4.1% this year.

Under its existing license agreement with CureVac, GSK will receive $320 million in cash, with the remainder of the settlement linked to amendments reducing royalties owed on potential future GSK mRNA influenza, COVID-19, and combination vaccine products.

The deal also grants GSK a 1% royalty on U.S. sales of influenza, COVID-19, and related mRNA products from Pfizer and BioNTech starting in 2025.

If BioNTech’s pending acquisition of CureVac closes, litigation outside the U.S. will also be settled. In that case, GSK would gain an additional $130 million in cash, further 1% royalty rights on international sales, and reductions in milestone and royalty payments for its own mRNA products abroad.

The upfront settlement will be recorded as other operating income in GSK’s third-quarter 2025 results, while royalty income will be included in total and core results going forward.

The company said the settlement does not affect its separate patent infringement cases against Pfizer and BioNTech in the U.S. and Europe. GSK also agreed to tender its approximately 16.6 million CureVac shares in BioNTech’s upcoming offer.