Particle.news
Download on the App Store

Moderna Reaches Up to $2.25 Billion LNP Patent Settlement, Pays $950 Million Upfront

The settlement grants Moderna a global license with no royalties, leaving a narrow government‑liability appeal as the only remaining issue.

Overview

  • Moderna will record a $950 million charge in Q1 2026 and make the lump‑sum payment in Q3 2026 to Arbutus Biopharma and Genevant Sciences.
  • An additional payment of up to $1.3 billion depends on the Federal Circuit’s ruling on Moderna’s Section 1498 appeal, with a refund plus interest if Moderna ultimately prevails.
  • The agreement provides a non‑exclusive global license to Genevant/Arbutus lipid nanoparticle delivery technology and resolves all U.S. and international litigation without future royalties.
  • The deal was announced days before a scheduled Delaware federal jury trial that would have tested infringement claims tied to Moderna’s Covid‑19 vaccine.
  • Shares of Moderna rose roughly 8%–10% following the news, and the company now guides to end 2026 with about $4.5–$5 billion in cash and total liquidity up to approximately $5.9 billion.