To settle Pfizer’s patent battle, Merck will pay royalties on the next-generation pneumococcal vaccine
- ByManjeet Singh | September 27, 2021
Merck and Pfizer reached an agreement this week to dismiss patent claims against each other in the U.S. federal court in Delaware. Under the agreement, Merck will pay Pfizer 7.25 percent of its worldwide net sales of pneumococcal conjugate shots through the end of 2026. Bloomberg reports that the company will owe a 2.5% royalty to its New York rival through the end of 2035. Judge Richard Andrews was asked by the parties on Tuesday to dismiss the lawsuit with prejudice.
Merck sued Pfizer in January 2021 seeking a declaration that its new vaccine, Vaxneuvance, did not infringe Pfizer’s patents on Prevnar. More than two months after FDA approved Vaxneuvance against 15 strains of Streptococcus pneumoniae, the two sides have reached a settlement.
A spokesperson for Pfizer confirmed the resolution of the patent dispute last Wednesday while there hasn’t been a comment from Merck yet.
Although Pfizer has an edge in the market with its Prevnar 13 vaccine, Merck’s vaccine may be the first next-generation product to be approved by the FDA for children. Market watchers anticipate Merck will file for approval by the end of the year, and Pfizer by the end of 2022. The upcoming vaccine launches by Merck and Pfizer are expected to generate blockbuster revenues down the road.
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