Moderna settles patent dispute with Arbutus for $950 million

Moderna Inc. (NASDAQ: MRNA) announced a settlement agreement with Arbutus Biopharma Corporation and Genevant Sciences GmbH to resolve all global patent litigation for $950 million, according to a company statement.

The pharmaceutical company will make the lump sum payment in the third quarter of 2026 and record a corresponding charge in the first quarter of 2026. The settlement covers all worldwide litigation related to Moderna's Spikevax and mRESVIA vaccines and provides coverage for its full infectious disease portfolio with no future royalties.

Moderna plans to appeal a district court decision under Section 1498 to the Federal Circuit Court of Appeals. If the company loses the appeal, it has agreed to pay an additional amount up to $1.3 billion within 90 days of that decision. The company stated it considers a loss in the Section 1498 proceeding not probable and will not record a charge for the potential additional payment.

The company expects to end 2026 with $4.5 billion to $5.0 billion in cash and cash equivalents and retains access to $900 million under its existing credit facility. Total projected liquidity at the end of 2026 will be $5.4 billion to $5.9 billion.

"Resolving this legacy matter from our pandemic response removes uncertainty and allows us to turn our full focus to Moderna's exciting near-term future," said Chief Executive Officer Stéphane Bancel.

Moderna continues to pursue intellectual property claims against other companies including Pfizer and BioNTech. The company maintains that assets will exceed liabilities across its intellectual property litigation portfolio.

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