By Jörn Poltz and Ludwig Burger
MUNICH (Reuters) - A German court on Tuesday invalidated a patent that was the basis of a patent violation lawsuit brought by CureVac against its domestic rival BioNTech (NASDAQ:BNTX), in a blow to CureVac's claims for a share in billions of euros in COVID-19 vaccine revenues.
"The patent is being declared invalid for the territory of the Federal Republic of Germany," Walter Schramm, presiding judge in Germany's Munich-based patent court, said in his ruling after a hearing.
CureVac's Nasdaq-listed shares plunged 35% to a record low after the verdict.
The patent in question is one of several intellectual property titles related to messenger RNA technology in vaccines that CureVac claims were infringed in ongoing legal proceedings.
BioNTech has responded by challenging the validity of CureVac's patents and of its so-called German utility models, which are easier to obtain than patents but confer a shorter exclusivity period.
CureVac's efforts to develop an mRNA-based COVID-19 vaccine did not come to fruition during the pandemic, whereas BioNTech and its partner Pfizer (NYSE:PFE) chalked up more than $40 billion in combined vaccines sales in 2021 and 2022.
CureVac, which is working with GSK on next-generation mRNA shots, said in a statement it would appeal before the German Federal Court of Justice and that Tuesday's court ruling did not affect its ongoing litigation related to seven other intellectual property titles against BioNTech.
BioNTech said it welcomed the court decision. "We will continue to vigorously defend our innovations against all allegations of patent infringement including this case," it added.
Analysts have previously said being awarded even a small fraction of BioNTech's revenues could transform CureVac's financial position.
A regional German court in September put on hold a separate patent infringement trial brought by CureVac against BioNTech over the use of mRNA technology in COVID-19 vaccines, weighing on CureVac's shares.
The Duesseldorf regional court said at the time it suspended its proceedings until the German and European patent offices decide on a legal challenge filed by BioNTech over the validity of CureVac's intellectual property rights.