Moderna (MRNA) Climbs 16% as Arbutus-Genevant Legal Battle Clears

Moderna Inc. (NASDAQ:MRNA) is one of the 10 Stocks Dominating Today’s Market Action.

Moderna snapped a two-day losing streak on Wednesday, jumping 15.99 percent to finish at $57.80 apiece after resolving a four-year legal dispute with two biopharmaceutical companies in relation to an alleged patent infringement of their lipid nanoparticle (LNP) delivery technology.

In a statement, Moderna Inc. (NASDAQ:MRNA) said that it agreed to pay a total of $2.5 billion to Arbutus Biopharma Corporation and Genevant Sciences GmbH to resolve an LNP patent infringement case, of which $950 million will be paid in lump sum in the third quarter of the year, while the remaining $1.3 billion will be settled upon the decision on its appeal to the Federal Circuit.

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The issue centered on Arbutus and Genevant’s allegations that Moderna Inc. (NASDAQ:MRNA) used their LNP technology for its Spikevax and mRESVIA vaccines without their permission.

“If Moderna ultimately prevails on that issue, no further payments will be due. If, however, the Federal Circuit affirms liability under Section 1498, Moderna has agreed to make an additional payment of up to $1.3 billion within 90 days of that decision, depending on the scope of the decision,” it said.

“Thereafter, should Moderna ultimately prevail through further proceedings—whether en banc, at the Supreme Court, or on remand to the district court—Arbutus/Genevant will refund the full payment plus interest,” it noted.

Moderna Inc. (NASDAQ:MRNA) said that it expects to record charges of $950 million in the first quarter of the year in relation to the settlement, and end the year with $4.5 billion to $5 billion in cash and cash equivalents.

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