Moderna Reaches $950M Global Settlement With Arbutus And Genevant, Resolving Vaccine Patent Litigation

Moderna, Inc. has reached a global settlement agreement with Arbutus Biopharma Corporation and Genevant Sciences GmbH, resolving all ongoing litigation worldwide, including proceedings before the U.S. District Court for the District of Delaware. The agreement settles disputes related to Moderna’s COVID-19 and RSV vaccines, including Spikevax and mRESVIA, and provides clarity for the company’s broader infectious disease portfolio, such as mNEXSPIKE and mCOMBRIAX. Under the settlement, Moderna will make a lump-sum payment of $950 million in the third quarter of 2026, with no future royalties owed.

As part of the agreement, Moderna will appeal to the Federal Circuit to assert that government-contractor immunity under 28 U.S.C. § 1498 limits its liability. If the company prevails, no additional payments will be required. However, if the Federal Circuit upholds liability under Section 1498, Moderna has agreed to pay up to an additional $1.3 billion within 90 days, depending on the scope of the ruling. Should Moderna later succeed through further legal proceedings, including potential Supreme Court review or remand, Arbutus and Genevant would refund the full additional payment plus interest.

"Resolving this legacy matter from our pandemic response removes uncertainty and allows us to turn our full focus to Moderna's exciting near-term future," said Stéphane Bancel, Chief Executive Officer of Moderna. "In 2026, we will return to revenue growth and end the year with a strong balance sheet, with more than $5 billion in liquidity, as we drive toward breakeven in 2028. This year we also expect the approval of our flu plus COVID combination and standalone flu vaccines, and several highly anticipated therapeutic clinical trial results in cancer and in rare disease. We remain focused on driving growth by delivering transformative medicines to patients."

Moderna expects to record a $950 million charge in the first quarter of 2026 related to the settlement. The company has determined that a loss from the pending Section 1498 proceeding is not probable and therefore does not anticipate recording an additional charge at this time.

Following the settlement, Moderna projects ending 2026 with $4.5 to $5.0 billion in cash and cash equivalents and retains access to up to $900 million through its existing credit facility. This would bring total projected liquidity to between $5.4 and $5.9 billion. The company also confirmed it will continue to actively defend and enforce its intellectual property portfolio, including ongoing claims against other market participants such as Pfizer and BioNTech.