Latest news with #CureVac
Business Insider
2 days ago
- Business
- Business Insider
Sector Spotlight: Trump administration seeks hometown discount from Big Pharma
Welcome to the latest 'Sector Spotlight,' where The Fly looks at a new industry every week and highlights its happenings. This edition focuses on the pharmaceutical sector following a busy week of earnings and political news. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. PHARMACEUTICAL NEWS: The Trump administration has been talking to drugmakers about ways to raise prices of medicines in Europe and elsewhere in order to cut drug costs in the United States, Reuters' Patrick Wingrove and Maggie Fick reported, citing a White House official and three pharmaceutical industry sources. U.S. officials told drug companies it would support their international negotiations with governments if they adopt 'most favored nation' pricing under which U.S. drug costs match the lower rates offered to other wealthy countries. President Donald Trump said while being interviewed on CNBC earlier this week that separate tariff announcements are coming soon on semiconductor chips and pharmaceuticals. GSK (GSK) announced that, in connection with the mRNA patent settlement reached between CureVac (CVAC) and BioNTech (BNTX) on, the company will receive an upfront settlement of $370M. GSK will also receive a 1% royalty in respect of US sales of influenza, COVID-19 and related combination mRNA vaccine products by BioNTech and Pfizer (PFE) from the beginning of 2025. These payments are due to GSK in accordance with the terms of its existing license agreement with CureVac. Of the upfront settlement amount, $320m will be in cash. The remainder is attributed to the value of an amendment to GSK's existing agreement with CureVac, which includes a significant reduction in royalties to be paid by GSK on our potential future mRNA influenza, COVID-19 and influenza/COVID-19 combination products. If the pending acquisition of CureVac by BioNTech successfully closes, the mRNA patent litigation between CureVac and BioNTech outside of the US will also be settled. GSK would then be entitled to an additional $130 million in cash and 1% royalty payments in respect of future sales outside of the US by BioNTech and Pfizer. Sales of Novo Nordisk's (NVO) Wegovy and Eli Lilly's (LLY) Mounjaro doubled in India in July compared to June, Rishika Sadam and Kashish Tandon of Reuters noted, citing research firm Pharmarack. Demand for anti-obesity drugs has been on an upswing in the country. Novartis (NVS) has made a takeover offer for Avidity Biosciences (RNA), which has a market value of $4.3B, The Financial Times' Oliver Barnes, James Fontanella-Khan and Hannah Kuchler wrote. Avidity, which has three medicines in clinical trials that treat different forms of muscular dystrophy, is working with advisers to assess its options, people familiar with the matter say. The U.S. Department of Health and Human Services announced the beginning of a coordinated wind-down of its mRNA vaccine development activities under the Biomedical Advanced Research and Development Authority, including the cancellation and de-scoping of various contracts and solicitations. The decision follows a comprehensive review of mRNA-related investments initiated during the COVID-19 public health emergency. 'We reviewed the science, listened to the experts, and acted,' said HHS Secretary Robert F. Kennedy, Jr. 'BARDA is terminating 22 mRNA vaccine development investments because the data show these vaccines fail to protect effectively against upper respiratory infections like COVID and flu. We're shifting that funding toward safer, broader vaccine platforms that remain effective even as viruses mutate.' The wind-down affects a range of programs including: Cancellation of BARDA's award to Moderna (MRNA) /UTMB for an mRNA-based H5N1 vaccine; Termination of contracts with Emory University and Tiba Biotech; De-scoping of mRNA-related work in existing contracts with Luminary Labs, ModeX, and Seqirus; Rejection or cancellation of multiple pre-award solicitations, including proposals from Pfizer , Sanofi Pasteur (SNY), CSL Seqirus, Gritstone, and others, as part of BARDA's Rapid Response Partnership Vehicle and VITAL Hub, and; Restructuring of collaborations with DoD-JPEO, affecting nucleic acid-based vaccine projects with AAHI, AstraZeneca (AZN), and HDT Bio. Bristol Myers (BMY) announced that the FDA has accepted the supplemental biologics license application for Breyanzi as a potential treatment for adult patients with relapsed or refractory marginal zone lymphoma who have received at least two prior lines of systemic therapy. EARNINGS RECAP: Eli Lilly's second quarter results beat expectations and the company raised its full-year outlook as well. However, shares of the company were down 7% on Thursday morning after the company reported data from a late-stage trial of its under-development obesity pill. 'Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines,' said David Ricks, Lilly chair and CEO. 'Our pipeline continued to advance, highlighted by positive study results in oncology and cardiometabolic health-including Mounjaro's demonstrated cardio-protective effects in patients with type 2 diabetes and heart disease and strong data for our oral incretin, orforglipron, in obesity. We also expanded manufacturing capacity to meet increasing demand and invested in key R&D initiatives to support our long-term growth.' Leerink downgraded Eli Lilly to Market Perform from Outperform with a price target of $715, down from $944. Following 'disappointing' initial results for orforglipron, the company's oral GLP-1, the firm is lowering its long-term projections and notes that its 'investment thesis has changed' as it no longer expects upward pressure on long-term consensus expectations. The firm also noted that Lilly's major competitor Novo Nordisk is struggling and may need to continue to use price to compete in its duopoly while the firm expects growing competition from various competitors starting late decade. Conversely, JPMorgan views the post-earnings selloff in shares of Eli Lilly as providing a 'compelling' entry point. The Q2 report came in well ahead of consensus estimates and Lilly is raised guidance, which should dispel some weight loss market concerns, the analyst tells investors. However, the firm says the bigger focus was on orforglipron's Phase 3 obesity data where weight loss came in slightly below expectations. JPMorgan does not see 1-2 percentage points lower weight loss as meaningfully changing the use case for orforglipron. It keeps an Overweight rating on Lilly shares with a $1,100 price target. Pfizer also experienced a beat and raise quarter in Q2. Although, the company did note that its FY25 guidance does not anticipate any share repurchases. On the company's Q2 earning call, Pfizer noted that the company's guidance 'absorbs the impact of the currently imposed tariffs from China, Canada and Mexico as well as potential price changes this year based on the letter received on July 31 from President Trump.' Later in the call, Pfizer CEO Albert Bourla said the company is 'in very active discussions' at 'the highest levels of this government.' Bourla added: 'I discussed myself with the president after he sent the letter to me and all the others. We discussed a lot with the Secretary Kennedy, we discussed a lot with Doctor Post who is responsible for implementing a lot of these things. And I would say only that these discussions are extremely productive. I think we understand where the president comes from, and we are engaging in a productive way to find a solution. But because we are in active discussions, it's inappropriate for me to start providing more details because I don't want to say things while discussing with them. So I understand that many others may have questions about that, and I'm not sure I can give more information than what I just told you. That we had a letter that says a base of what the president wants. The letter asks a lot from us. But we are engaged in productive discussions with them.' Following the report, Citi analyst Geoff Meacham raised the firm's price target on Pfizer to $26 from $25 and reiterated a Neutral rating on the shares. The company reported strong Q2 results, but policy headwinds warrant a continued cautious stance, the analyst told investors.
Daily Mail
2 days ago
- Business
- Daily Mail
Drugmaker GSK lands £372m in Covid jab pact
Drugmaker GSK will be paid up to £372m after settling a patent row over Covid vaccines in the US. The London-listed pharmaceuticals giant – previously known as Glaxosmithkline – and German partner CureVac reached an agreement with rivals BioNTech and Pfizer. The tussle had centred on the development of mRNA jab technology, which was at the forefront of the fight against Covid-19. The settlement of the long-running dispute comes two months after BioNTech agreed to buy its domestic peer CureVac in a £930m deal. In 2022, CureVac filed a patent lawsuit against BioNTech over its use of mRNA technology, seeking compensation for alleged infringement of its intellectual property rights. GSK's share of the settlement payment is £275m and it will get 1 per cent of the royalties from the vaccine sales in the US from the beginning of 2025. If BioNTech's takeover of CureVac goes ahead, GSK, led by chief executive Emma Walmsley, will also be paid a further £97m and royalties will be extended to non-US sales. Drugmakers launched several lawsuits over alleged patent infringement in relation to their Covid vaccines. CureVac said that, under the terms of the settlement, it would grant BioNTech and Pfizer a licence to make, use, and sell mRNA-based Covid and flu jabs. GSK remains in dispute with Pfizer and BioNTech in the US and Europe over alleged infringement of patents. Shares in GSK rose 0.9 per cent, or 12.5p, to 1395.5p. Danni Hewson, analyst at AJ Bell, said: 'The dispute gives GSK a modest, though still welcome, cash injection and the prospect of sales royalties.' Derren Nathan, at Hargreaves Lansdown, said: 'Today's rise hasn't quite clawed back all losses seen in the stock over the last month as concerns about tariffs and US vaccine policy continue to circle. But with full-year guidance nudged up to the top end of guidance in the latest earnings release, GSK looks to be in good health.'
Economic Times
2 days ago
- Business
- Economic Times
GSK set to get $500 million from settlement of mRNA lawsuit
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel CureVac NV has settled a long-running patent dispute over mRNA vaccines with Pfizer and BioNTech SE in the US, which will see CureVac's former collaborator GSK receive as much as $500 million and 1% of royalties from future vaccine settlement comes as BioNTech looks to close the purchase of its former rival CureVac for about $1.25 billion. GSK will receive $370 million upfront, with another $130 million on the closing of the the wake of the race to develop Covid-19 vaccines, drugmakers launched multiple lawsuits against one another over alleged patent infringement. The litigation has spanned across Europe and the US, pitting rival vaccine manufacturers against one another in the worked with CureVac to develop Covid-19 vaccines but they failed, losing out to quicker, nimbler rivals. Last year, the two companies restructured their collaboration, with GSK paying CureVac up to $1.4 billion for the full rights to mRNA flu and Covid-19 vaccines it was developing with the German will also receive 1% on royalties of future Pfizer-BioNTech sales of flu, Covid-19 and related combination mRNA vaccines in the US. Once BioNTech completes the purchase of CureVac, GSK will also receive 1% of royalties from future sales outside the the settlement ends CureVac's litigation with Pfizer and BioNTech, it doesn't mean the same for GSK. The British drugmaker said it will continue its litigation against BioNTech and Pfizer for what it alleges is infringement of its patents.
Time of India
2 days ago
- Business
- Time of India
GSK set to get $500 million from settlement of mRNA lawsuit
CureVac NV has settled a long-running patent dispute over mRNA vaccines with Pfizer and BioNTech SE in the US, which will see CureVac's former collaborator GSK receive as much as $500 million and 1% of royalties from future vaccine sales. The settlement comes as BioNTech looks to close the purchase of its former rival CureVac for about $1.25 billion. GSK will receive $370 million upfront, with another $130 million on the closing of the acquisition. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program In the wake of the race to develop Covid-19 vaccines, drugmakers launched multiple lawsuits against one another over alleged patent infringement. The litigation has spanned across Europe and the US, pitting rival vaccine manufacturers against one another in the courts. GSK worked with CureVac to develop Covid-19 vaccines but they failed, losing out to quicker, nimbler rivals. Last year, the two companies restructured their collaboration, with GSK paying CureVac up to $1.4 billion for the full rights to mRNA flu and Covid-19 vaccines it was developing with the German biotech. GSK will also receive 1% on royalties of future Pfizer-BioNTech sales of flu, Covid-19 and related combination mRNA vaccines in the US. Once BioNTech completes the purchase of CureVac, GSK will also receive 1% of royalties from future sales outside the US. Live Events While the settlement ends CureVac's litigation with Pfizer and BioNTech, it doesn't mean the same for GSK. The British drugmaker said it will continue its litigation against BioNTech and Pfizer for what it alleges is infringement of its patents.
Yahoo
2 days ago
- Business
- Yahoo
BioNTech (BNTX) Settles mRNA Patent Dispute with CureVac for US$370 Million
Recent developments have highlighted a major mRNA patent settlement involving BioNTech and CureVac, leading to a $370 million payment with GSK plc, which has added complexity to BioNTech's financial landscape. This legal resolution, coupled with BioNTech's improved earnings report showing reduced net losses and higher sales, aligns with a broadly positive trend in major market indexes. While the S&P 500 and Nasdaq have seen gains, BioNTech's 20.03% price increase over the last quarter suggests these events have added weight to broader market movements, despite mixed reactions across various sectors. Buy, Hold or Sell BioNTech? View our complete analysis and fair value estimate and you decide. Find companies with promising cash flow potential yet trading below their fair value. The recent mRNA patent settlement involving BioNTech and CureVac, resulting in a US$370 million payment with GSK plc, has introduced new financial implications for BioNTech. This development, alongside their improved earnings, highlights their ongoing complexity amid expanding oncology initiatives and mRNA advancements. Over the last five years, BioNTech's total shareholder return was 58.35%, suggesting considerable value appreciation despite current volatility. In the past year, BioNTech's share performance outpaced both the US Biotechs industry, which returned a decline, and the broader US market, which returned 22.4%. This performance underscores the company's relative strength even as it navigates challenges such as declining COVID-19 vaccine demand and oncology pivot costs. The resolved patent issue and better financial performance could positively influence future revenue and earnings forecasts, potentially bolstering investor sentiment around their diversified product pipeline. However, uncertainties like regulatory risks and pricing pressures remain. With the current share price at US$111.35 compared to the analyst consensus price target of US$136.65, investors might perceive a roughly 22.7% potential upward movement, aligning share valuation with expected future growth trends. Nonetheless, the divergence between current price and analyst target requires careful evaluation of underlying assumptions. Explore historical data to track BioNTech's performance over time in our past results report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BNTX. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
