Moderna Settles with Genevant and Arbutus, Ending LNP Patent Dispute

"The settlement resolves all U.S. and international patent litigation concerning the unauthorized use of Genevant's and Arbutus' lipid nanoparticle (LNP) delivery technology in Moderna's COVID-19 vaccines. The agreement came just days before a highly anticipated jury trial was scheduled to begin in the U.S. District Court for the District of Delaware."

"Moderna will make an upfront payment of $950 million to Genevant and Arbutus in July 2026. The companies also noted that an additional $1.3 billion payment is contingent on a favorable appellate ruling that 28 U.S.C. § 1498 does not bar the claims against Moderna for patent infringement, except for a small fraction of doses sold to U.S. government employees."

"If the complete $2.25 billion is paid, the deal would represent the largest disclosed patent settlement in the pharmaceutical industry, according to the press release."

Genevant Sciences and Arbutus Biopharma reached a global settlement with Moderna resolving all U.S. and international patent litigation regarding unauthorized use of lipid nanoparticle delivery technology in Moderna's COVID-19 vaccines. The settlement, announced just before a scheduled jury trial, could total $2.5 billion. Moderna will pay $950 million upfront in July 2026, with an additional $1.3 billion contingent on a favorable appellate ruling regarding Section 1498 patent immunity. Moderna consented to a judgment of infringement and no invalidity for four asserted patents. Moderna expressed confidence in its Federal Circuit appeal, stating a loss is not probable, but agreed to the contingent payment if the court affirms liability.

Read at IPWatchdog.com | Patents & Intellectual Property Law