CAMBRIDGE, Mass., March 4, 2026, 05:30 EST
Moderna (MRNA) has agreed to pay as much as $2.25 billion to resolve a patent fight with Genevant Sciences and Arbutus Biopharma tied to the lipid nanoparticle tech behind its COVID-19 vaccine, sidestepping a Delaware trial set for next week.
Under the agreement, Moderna will pay $950 million in July 2026, with another $1.3 billion potentially on the line depending on how the appeal shakes out. Shares of Moderna shot up over 10% after hours. Jefferies analyst Andrew Tsai called the deal a relief, saying it “removes the worst-case scenario” of high royalty payments. 1
According to a Roivant Sciences filing, Moderna will get a fully paid-up, royalty-free license and a covenant not to sue on specific infectious-disease vaccines—these use an SM-102-based lipid nanoparticle formulation, covering both Spikevax and mRESVIA. In return, Moderna owes an upfront payment by July 8, 2026. Lipid nanoparticles—essentially microscopic fat-based shells—are used to protect messenger RNA (mRNA) until it reaches human cells.
Moderna is planning for a $950 million hit in the first quarter of 2026, according to the company, which left its cash and equivalents guidance unchanged at $4.5 billion to $5.0 billion for year-end. The biotech still has up to $900 million available through an existing credit line. Chief executive Stéphane Bancel called the settlement “Resolving this legacy matter from our pandemic response removes uncertainty.” 2
Genevant and Arbutus said in a separate statement that Moderna has agreed to a judgment of infringement and no invalidity on the four patents in question. Under the settlement, Genevant will provide Moderna with a global, non-exclusive license covering certain SM-102-containing infectious-disease vaccines. “We are pleased with this settlement, which allows us to put this lengthy dispute behind us,” Genevant CEO James Heyes said. Arbutus CEO Lindsay Androski added, “Today, Moderna has finally acknowledged the same.” 3
Moderna’s shot at an extra $1.3 billion depends on its Section 1498 appeal—a U.S. statute that sometimes transfers patent infringement liability to the federal government when the claims stem from government contracts. The rule has turned into a flashpoint for pandemic-related patent fights, and where it lands remains unsettled.
The deal lands in the middle of an ongoing and tangled dispute about mRNA vaccine ownership—covering not just the genetic blueprints, but also the technologies that ferry them into cells.
Moderna remains locked in ongoing patent disputes with Pfizer and BioNTech tied to COVID-19 vaccine technology. Back in February, BioNTech filed suit against Moderna, claiming the mNEXSPIKE next-generation COVID-19 vaccine infringed one of its patents. Moderna responded that it plans to fight the allegations. 4
The cash impact isn’t going away, and that appeal could yet force Moderna to pay more. On top of that, the company faces the challenge of converting a pipeline-heavy narrative into actual sales, with COVID shot demand proving unpredictable and plenty of rivals in the field.
