Mar. 4 at 8:18 PM
Moderna agreed to pay
$950 million to settle patent litigation with Arbutus Biopharma and Genevant Sciences over lipid nanoparticle technology used in its Covid-19 vaccine, removing a major legal overhang that once carried potential damages of up to
$7.9 billion.
As part of the deal, Moderna will appeal on government contractor liability grounds; if unsuccessful, it could owe an additional
$1.3 billion, though the company said such an outcome is “not probable.” Analysts view the settlement as manageable, especially given Moderna’s
$45–
$50 billion in Covid vaccine revenue, and see it as reducing significant tail risk.
Shares surged nearly 16% following the announcement and are up sharply this year, as investors shift focus toward Moderna’s oncology pipeline while its respiratory vaccine business faces slower growth.
$MRNA $ABUS $ROIV $SPX