BioNTech Stock In Focus After $791.5M Settlement With NIH: Retail Cautious
Synopsis
Retail sentiment on the stock leaned cautious as many commenters noted concerns regarding the mRNA prospects and BioNTech’s capabilities.
Shares of BioNTech slipped 0.83% in after-hours trading on Friday after the company said it would pay $791.5 million in a settlement payment with the National Institutes of Health, drawing a cautious response from retail investors.
The payment reportedly comprises $750 million as a settlement for claimed royalties during calendar years 2020-2023, and $41.5 million consideration for the NIH towards an amended and restated license agreement, dated December 20.
BioNTech, a clinical-stage biotechnology company, focuses on patient-specific immunotherapies for the treatment of cancer and other serious diseases.
BioNTech had been in discussions with the National Institutes of Health concerning royalties and other amounts allegedly owed on certain sales along with its collaboration partner Pfizer in connection to COVID-19 vaccine, the Fly.com reported.
Retail sentiment on the stock leaned cautious as many commenters noted concerns regarding the mRNA prospects and BioNTech’s capabilities.
The Fly.com report said the company's execution of the settlement agreement wasn’t an admission of liability as the company denied it had any legal liabilities or was in violation of any laws.
NIH has reportedly agreed to consider any alleged noncompliance under the amended license agreement to be resolved for the period up to and including January 1, 2024, including any claimed historical royalty payments allegedly owed by the company prior to January 1, 2024.
In parallel, BioNTech and the NIH also entered into the amended license agreement that provides a “framework” for a license for use in combination products including the COVID-19 vaccine used in combination with other active pharmaceutical ingredients.
The settlement agreement requires Pfizer to reimburse BioNTech for $364.5 million of the claimed royalties paid to the NIH for 2020-2023 sales, the report added.
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