BioNTech to “vigorously” defend against Moderna’s patent infringement claims

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BIONTECH($NASDAQ:BNTX): In response to rival Moderna’s plans to sue U.S. pharma giant Pfizer and its partner BioNTech over claims of patents infringement related to the COVID-19 vaccine, the German company said Friday it would “vigorously” defend against all allegations. “BioNTech’s work is original, and we will vigorously defend against all allegations of patent infringement,” the company said, adding that such allegations over successful products have become commonplace. Pfizer and BioNTech said they were aware of Moderna’s plans to file suit and were “disappointed” by the move. “this action is without merit and are prepared to defend ourselves vigorously,” the companies said in a statement. The suit is the latest in a series of legal challenges Moderna has filed against other companies in an effort to protect its intellectual property. In December, the company sued Alnylam Pharmaceuticals Inc over patents related to messenger RNA technology. The news of Moderna’s plans to sue Pfizer and BioNTech sent shares of both companies down in pre-market trading Friday.

Market Price

BioNTech’s stock opened at $145.3 on Friday and closed at $142.6. Moderna’s claims allege that BioNTech’s mRNA technology infringes on Moderna’s patents. The patent infringement case is currently pending in the U.S. District Court for the District of Massachusetts.

VI Analysis

Biontech SE is a German biotechnology company that develops and manufactures innovative vaccines and cancer immunotherapies. The company’s fundamentals reflect its long-term potential and VI’s Star Chart shows that Biontech SE has an intermediate health score of 6/10 with regard to its cashflows and debt, meaning it might be able to safely ride out any crisis without the risk of bankruptcy. Biontech SE is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. High growth companies are deemed more risky as they attempt to grow faster. However, Biontech SE is strong in asset, growth, profitability, and medium in dividend, making it a more stable company.

Summary

The news sent BioNTech’s stock price down the same day. BioNTech and Moderna are both leaders in the development of vaccines against the coronavirus. Moderna’s claims relate to two patents that cover technology used in BioNTech’s vaccines. BioNTech said it is “confident” that it does not infringe on Moderna’s patents and that it will “vigorously defend” itself against the claims. The news of the patent infringement claims comes as BioNTech’s stock price has been under pressure in recent days. The stock is down nearly 10% from its recent highs. Despite the news of the patent infringement claims, analysts remain bullish on BioNTech’s long-term prospects. The company is one of the leading developers of vaccines against the coronavirus and is expected to continue to grow at a rapid pace in the coming years.