Moderna has agreed to pay up to $2.25 billion to Arbutus Biopharma and Genevant Sciences, a subsidiary of Roivant Sciences, to resolve a long-running legal dispute over key technology used in its mRNA vaccines. The settlement includes an upfront payment of $950 million expected in the third quarter of 2026, while Moderna continues to appeal for an additional $1.3 billion tied to potential payouts.
The agreement removes the obligation for future royalties on mRNA vaccine sales following the lump-sum payment. The dispute, which was nearing a jury trial in Delaware, centered on lipid nanoparticle (LNP) delivery systems, critical components that enable mRNA to enter human cells. The resolution significantly reduced Moderna’s potential liability compared with the roughly $5 billion initially sought by the plaintiffs and triggered a 9% rise in the company’s share price in early trading.
The settlement also grants Moderna a non-exclusive license to Genevant’s LNP technology for certain vaccines, while allowing the company to stabilize its financial position amid declining COVID-19 vaccine revenues. James Heyes, CEO of Genevant, stated, “It is enormously gratifying for the Genevant team to, at long last, be recognized for our pivotal contribution to restoring normalcy around the world in the face of a once-in-a-lifetime pandemic.”
Analysts viewed the agreement as a favorable outcome for Moderna, with reduced financial strain and improved visibility on future growth. The company expects to end the year with $4.5 to 5 billion in cash and access to an additional $900 million credit facility. Meanwhile, Arbutus and Genevant continue separate litigation against Pfizer and BioNTech over similar technology claims.
