Shares jump as Moderna settles Covid vaccine dispute

(Sharecast News) - Shares in Moderna sparked on Wednesday, after the US drugs firm settled a long-running legal dispute concerning its Covid-19 vaccine. Under the terms of the deal struck with Arbutus Biopharma and Genevant Sciences, Moderna will pay a $950m lump sum in the third quarter, with an additional $1.3bn paid dependent on the outcome of a separate legal appeal.

In return, it will not owe the companies any royalties for lipid nanoparticle (LNP) technology used in future vaccines.

The deal resolves all litigation worldwide, including in the US, Moderna confirmed. As at 1030 GMT, the New York-listed stock had put on 5% in pre-market trading. In contrast, Arbutus was down nearly 12%, while Genevant-parent Roivant Sciences was largely unchanged.

Stephane Bancel, chief executive officer of Moderna, said: "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.

"In 2026 we will return to growth and end the year with a strong balance sheet, with more than $5bn in liquidity, as we drive toward breakeven in 2028."

LNP, a delivery technology owned by Genevant and Arbutus, was used by Moderna in its Covid vaccine without permission. The two companies have filed similar lawsuits against rival Covid vaccine manufacturers Pfizer and BioNTech, which are still ongoing.

James Heyes, Genevant chief executive, said the settlement "allows us to put this lengthy dispute behind us".

He continued: "It is enormously gratifying for the Genevant team to, at long last, be recognised for our pivotal contribution to restoring normalcy around the world in the face of a once-in-a-lifetime pandemic."

Lindsay Androski, chief executive of Arbutus, called the deal a "transformative outcome" for the company,

"Nobel laureates, industry executives and prominent researchers have long recognised that Arbutus sciences changed the drug development landscape when they invented LNP delivery technology," he said. "Moderna has finally acknowledged the same."