Morgan Stanley analyst Terence Flynn notes that BioNTech (BNTX) announced last week that it had reached a settlement agreement with the National Institutes of Health and University of Pennsylvania regarding past and future royalties on the company and partner Pfizer’s (PFE) COVID vaccine, Comirnaty. Noting that the deal will result in two low-single digit percentage royalties on forward sales of Comirnaty and the companies will pay $1.15B for historical royalties, the firm says it views this as “a manageable headwind for both companies.” The firm models total 2025 Comirnaty worldwide sales of $4.9B, of which a 5% royalty would represent about $250M.
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