used its intellectual property sounds explosive. The sums at stake are potentially huge, as the drug giant estimates sales of the vaccine will be $32 billion this year. It’s in nobody’s interest to kill this golden goose though. The most likely result will simply be lots of legal hissing, and at worst for Pfizer, a few plucked feathers.
Still, Moderna probably won’t get a giant amount by way of hard dollars. Moreover, vaccine revenue should drop rapidly in upcoming years. Assume a generous $10 billion in sales a year, and a 3% royalty, as Jefferies says is typical for a platform royalty, and that would be $300 million a year. For context, Moderna’s estimated profit this year is $11 billion, according to Refinitiv.In reality, total damages are likely to be even smaller, if they come at all.
Reuters rob_cyran Do any of the vaccines work? Or do none of them work because they copied a faulty version?
rob_cyran