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MRNA Stock Gains on $2.25B Deal to Settle Patent Dispute With ROIV, ABUS
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Key Takeaways
Moderna reached a settlement with Genevant and Arbutus over LNP technology used in its RSV vaccines.
MRNA will pay $950M upfront by July 2026 and up to $1.3B more if its Federal Circuit appeal fails.
Moderna expects a $950M Q1'26 charge and projects $4.5B-$5B in cash by the end of 2026.
Moderna (MRNA - Free Report) announced that it entered a settlement agreement resolving a patent dispute with Genevant Sciences, a subsidiary of Roivant Sciences (ROIV - Free Report) , and Arbutus Biopharma (ABUS - Free Report) .
With this deal, Moderna resolves all worldwide litigations filed last year accusing it of using Genevant/Arbutus’ lipid nanoparticle (LNP) technology without permission in its COVID-19 and RSV vaccines.
Moderna Stock Gains on Settlement Terms
Per the agreement terms, the company will pay $950 million as an upfront payment on or before July 8, 2026. Moderna will still appeal to the Federal Circuit, arguing that it has limited liability due to its status as a government contractor. If MRNA loses this appeal, it has agreed to make an additional payment of up to $1.3 billion within 90 days.
Shares of Moderna rose nearly 6% in the after-market trading yesterday, likely driven by the favorable settlement terms, which account for only a small fraction of the company’s vaccine sales during the pandemic. The Roivant Sciences subsidiary will grant Moderna a global, non-exclusive license to its LNP delivery technology, along with a covenant not to sue for certain Genevant/Arbutus patents and Moderna products.
Year to date, the stock has surged 69% compared with the industry’s 9% growth.
Image Source: Zacks Investment Research
MRNA’s Settlement Charge & Liquidity Outlook
Moderna expects to record a charge of $950 million in the first quarter of 2026 related to the settlement payment. Following the agreement, the company projects ending 2026 with $4.5 billion to $5 billion in cash and cash equivalents.
In addition, Moderna retains access to up to $900 million under its existing credit facility. This would bring the company’s total projected liquidity to $5.4 billion to $5.9 billion by the end of 2026.
Meanwhile, Arbutus and Genevant are involved in a similar patent dispute with Pfizer and BioNTech over the use of LNP technology in the COVID-19 vaccine Comirnaty. The case is currently ongoing.
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MRNA Stock Gains on $2.25B Deal to Settle Patent Dispute With ROIV, ABUS
Key Takeaways
Moderna (MRNA - Free Report) announced that it entered a settlement agreement resolving a patent dispute with Genevant Sciences, a subsidiary of Roivant Sciences (ROIV - Free Report) , and Arbutus Biopharma (ABUS - Free Report) .
With this deal, Moderna resolves all worldwide litigations filed last year accusing it of using Genevant/Arbutus’ lipid nanoparticle (LNP) technology without permission in its COVID-19 and RSV vaccines.
Moderna Stock Gains on Settlement Terms
Per the agreement terms, the company will pay $950 million as an upfront payment on or before July 8, 2026. Moderna will still appeal to the Federal Circuit, arguing that it has limited liability due to its status as a government contractor. If MRNA loses this appeal, it has agreed to make an additional payment of up to $1.3 billion within 90 days.
Shares of Moderna rose nearly 6% in the after-market trading yesterday, likely driven by the favorable settlement terms, which account for only a small fraction of the company’s vaccine sales during the pandemic. The Roivant Sciences subsidiary will grant Moderna a global, non-exclusive license to its LNP delivery technology, along with a covenant not to sue for certain Genevant/Arbutus patents and Moderna products.
Year to date, the stock has surged 69% compared with the industry’s 9% growth.
Image Source: Zacks Investment Research
MRNA’s Settlement Charge & Liquidity Outlook
Moderna expects to record a charge of $950 million in the first quarter of 2026 related to the settlement payment. Following the agreement, the company projects ending 2026 with $4.5 billion to $5 billion in cash and cash equivalents.
In addition, Moderna retains access to up to $900 million under its existing credit facility. This would bring the company’s total projected liquidity to $5.4 billion to $5.9 billion by the end of 2026.
Meanwhile, Arbutus and Genevant are involved in a similar patent dispute with Pfizer and BioNTech over the use of LNP technology in the COVID-19 vaccine Comirnaty. The case is currently ongoing.
Moderna, Inc. Price
Moderna, Inc. price | Moderna, Inc. Quote
MRNA’s Zacks Rank
Moderna currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.