Penn Sues BioNTech Over COVID-19 Vaccine Royalties Dispute

The University of Pennsylvania has initiated legal action against BioNTech, a German biotechnology company, over alleged underpayment of royalties for mRNA technology utilized in the Comirnaty COVID-19 vaccine. The lawsuit, filed on August 6, 2024, in a Pennsylvania federal court, claims that BioNTech owes the university a larger portion of its worldwide vaccine sales.

The dispute centers on "foundational" messenger RNA (mRNA) inventions developed by Penn professors and Nobel laureates Katalin Kariko and Drew Weissman. These scientists were awarded the Nobel Prize in Physiology or Medicine in 2023 for their groundbreaking work on mRNA technology, which has revolutionized vaccine development.

According to the lawsuit, BioNTech acquired a sublicense to Penn's technology through another company in 2017, subsequently using it to develop Comirnaty in collaboration with Pfizer. The university argues that BioNTech should pay royalties on all vaccines manufactured in countries where Penn holds patents, not just on those sold in such countries.

Penn's legal team stated, "BioNTech must pay royalties as a percentage of its entire worldwide sales and not, as it has done to date, on only a portion." This claim is based on the assertion that BioNTech produces all of its Comirnaty shots in countries where Penn's patents are in force.

The financial stakes are significant, considering that Pfizer reported $11.2 billion in Comirnaty sales for 2023. This lawsuit adds to the complex web of patent disputes involving BioNTech, Pfizer, Moderna, and other companies over COVID-19 vaccine technology.

mRNA vaccines, first developed in the early 1990s, have proven to be a game-changer in the fight against COVID-19. Unlike traditional vaccines, mRNA vaccines do not contain live virus and can be produced more rapidly. This technology also shows promise beyond vaccines, with potential applications in cancer treatment.

The University of Pennsylvania, founded in 1740 by Benjamin Franklin, is seeking monetary damages and a court order compelling BioNTech to comply with their contract. As of the report date, BioNTech had not responded to requests for comment on the complaint.

This legal battle underscores the complex interplay between academic institutions, biotechnology companies, and pharmaceutical giants in the development and commercialization of critical medical innovations. It also highlights the ongoing challenges in fairly compensating the originators of groundbreaking scientific discoveries.

"We are seeking full royalty payments under patent licensing agreements that enabled BioNTech to develop its marketed COVID vaccine."

As the case unfolds, it may have implications for future collaborations between universities and industry partners in the rapidly evolving field of biotechnology.