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SEONGNAM, South Korea - SK bioscience, the South Korean vaccine developer and prominent player in the biotechnology industry, has emerged victorious in a patent infringement lawsuit with pharmaceutical giant Pfizer regarding its pneumococcal conjugate vaccine (PCV13), the company announced today. The Supreme Court of Korea has ruled that SK bioscience’s exports of PCV13 vaccine components to Russia did not infringe on Pfizer’s patents. According to InvestingPro data, the company maintains a strong financial foundation with cash reserves exceeding its debt obligations, positioning it well for future growth despite recent market challenges.
The legal battle began in 2020 when Pfizer accused SK bioscience of infringing on the composition patent of its own vaccine, Prevnar 13, by exporting individual conjugate bulk substances and research-use finished products of PCV13 to Russia. The Supreme Court’s decision upheld the lower court’s ruling that the individual conjugates in SK bioscience’s vaccine did not fall within the scope of Pfizer’s patent claims. Additionally, the Court confirmed that SK bioscience’s production and supply of PCV13 for research purposes were not in violation of patent rights.
This ruling enables SK bioscience to proceed with plans to export PCV13 components to regions with high vaccine demand, such as Southeast Asia and Latin America, and to seek technology transfers through local partnerships. The company is also developing a 21-valent pneumococcal conjugate vaccine in collaboration with Sanofi, which entered Phase 3 clinical trials in late 2024, and is working on a next-generation vaccine expected to provide broader protection.
Despite being the first to develop Korea’s 13-valent pneumococcal conjugate vaccine, SKYPneumo, in 2016, SK bioscience faced a manufacturing and sales ban in Korea until 2027 due to the ongoing patent dispute. Post-2027, the company plans to manufacture and sell the vaccine domestically.
The global pneumococcal vaccine market is on an upward trajectory, with projections suggesting a growth rate of 5.6% annually, potentially reaching USD 15.1 billion by 2034. This growth is fueled by increased vaccination efforts and support from governments and organizations like the WHO and Gavi. While analysts anticipate sales growth for SK bioscience in the current year, InvestingPro analysis indicates the company faces profitability challenges in the near term. InvestingPro subscribers have access to 10+ additional key insights about SK bioscience’s financial health and market position, helping investors make more informed decisions in this growing market.
SK bioscience’s CEO, Jaeyong Ahn, expressed the significance of the court’s decision, stating it prevents a competitively developed Korean vaccine from going to waste and opens up new opportunities for global health contributions. While the company’s liquid assets currently exceed its short-term obligations, providing operational flexibility, the company’s stock price has experienced significant pressure in recent months.
The company recently achieved another legal milestone by invalidating a Moderna patent in Korea related to mRNA vaccine technology, a move seen as crucial in reducing patent risks and fostering innovation among domestic biotech firms.
Information for this article is based on a press release statement from SK bioscience.
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