Moderna Settles Patent Suit for $2.25B

The core of the dispute revolves around Arbutus' and Genevant's patents for lipid nanoparticle (LNP) technology, a critical delivery system that protects fragile mRNA and allows it to enter human cells to trigger an immune response. Arbutus and Genevant alleged that Moderna's COVID-19 vaccine, Spikevax, and its RSV vaccine, mRESVIA, utilized this patented LNP technology without proper licensing. The lawsuit was first filed in February 2022. This settlement, potentially the largest in pharmaceutical patent history, includes a guaranteed $950 million upfront payment from Moderna by July 2026. An additional $1.3 billion is contingent on the outcome of an appeal concerning Moderna's liability as a government contractor during the pandemic. Moderna has argued that U.S. taxpayers should assume liability for infringement for vaccines sold under its government contracts. As part of the deal, Moderna admits to infringement and the validity of four of Genevant and Arbutus's patents. In return, Moderna receives a global, non-exclusive license for the LNP technology for its infectious disease vaccines, ensuring no future royalties will be owed on these products. This removes a significant legal and financial overhang for the company. The agreement was reached just days before a jury trial was scheduled to begin in Delaware. This resolution ends all related litigation worldwide, which had expanded to include enforcement actions in 30 countries. While this case is settled, Arbutus and Genevant are still pursuing similar patent infringement lawsuits against Pfizer and BioNTech over their COVID-19 vaccine.