BRIEF—Merck settles with Pfizer over PCV patent litigation

27 September 2021

Merck & Co has entered into a settlement and license agreement with fellow US pharma giant Pfizer, resolving all worldwide patent infringement litigation related to the use of Merck’s investigational and licensed pneumococcal conjugate vaccine (PCV) products, including Vaxneuvance (pneumococcal 15-valent conjugate vaccine).

Vaxneuvance gained US regulatory approval in July this year, but has yet to come to the market, as the US Centers for Disease Control and Prevention’s (CDC) Advisory Committee on Immunization Practices (ACIP) is not expected to meet until October to discuss and make recommendations on the use of the vaccine in adults.

Under the terms of the agreement Merck will make certain regulatory milestone payments to Pfizer, as well as royalty payments on the worldwide sales of its PCV products as follows:

7.25% of net sales of all Merck PCV products through and including December 31, 2026.
2.5% of net sales of all Merck PCV products from January 1, 2027 through and including December 31, 2035.