A Moderna employee conducts tests at the company's vaccine facility in Laval, Que., in September, 2025.ROGER LEMOYNE/The Globe and Mail
Moderna shares rose 9 per cent on Wednesday after it settled a long-running legal battle over the technology that made its COVID-19 vaccine possible, removing an overhang and allowing it to focus on its pipeline.
Analysts noted the settlement, which involves paying up to $2.25-billion to a Roivant Sciences’ Genevant subsidiary, and Arbutus Biopharma, would shift investor focus back to Moderna’s cancer vaccines under development.
This resolves all U.S. and international legal actions accusing Moderna of unauthorized use of lipid nanoparticle technology owned by Genevant and Arbutus in its COVID vaccine.
“The company has certainty it is well funded through multiple late-stage oncology readouts expected in 2026 that represent new long-term growth drivers,” said William Blair analyst Myles Minter.
The company’s stock has also fallen nearly 90 per cent since its 2021 highs as COVID vaccine demand collapsed in the years following the pandemic.
Moderna will pay US$950-million upfront in July, 2026, with an additional US$1.3-billion contingent on the outcome of a separate legal appeal, while not owing royalties for the technology in its future vaccines, which is seen as a significant win for the company.
The payments are not as substantial as Wall Street had feared at over US$3-billion, said Citi’s Geoffrey Meacham.
Bernstein analyst Courtney Breen said, however, if the payment does become necessary, it could reduce the company’s cash reserves to as low as US$3.2-billion by 2026. Moderna expects reserves to be between US$4.5-billion to US$5-billion this year.
Breen added this “narrows the tightrope” for Moderna, as timing and scale of its other lawsuit against Pfizer and BioNTech is unknown, and its management has been known to be too optimistic in the past.
In 2022, Moderna sued Pfizer and BioNTech for infringing patents related to mRNA technology. BioNTech countersued Moderna in February, arguing Moderna’s next-generation COVID-19 shot, MNEXSPIKE, infringes one of its patents.