Moderna has agreed to pay $US950 million ($1.35 billion) to settle all ongoing litigation across the globe with Arbutus Biopharma and Genevant Sciences. The settlement pertains to the company’s existing and future vaccines, with no further royalties expected. Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. Its work is transforming healthcare and addressing a wide range of infectious diseases.
The company intends to argue that it possesses government-contractor immunity which would limit its liability. Moderna said in a statement that if it wins this argument, no additional payments will be required. However, should the Federal Circuit affirm its liability, the company is prepared to make an additional payment of up to $US1.3 billion within 90 days.
Shares in Moderna experienced a surge of 10 per cent in extended New York trading following the announcement. The company has indicated that it will make the initial payment as a lump sum during the third quarter of 2026. Furthermore, Moderna plans to account for the charge associated with the settlement in the first quarter of this year.
Stéphane Bancel, Moderna’s chief executive, stated that resolving the case “removes uncertainty and allows us to turn our full focus to Moderna’s exciting near-term future”. The resolution marks a significant step for Moderna, allowing it to concentrate on its pipeline of innovative vaccines and therapies.
