Arbutus Biopharma to receive $950M upfront in $2.25B Moderna settlement
Arbutus Biopharma will receive $950 million upfront and up to $1.3 billion contingent as part of a $2.25 billion global settlement with Moderna over LNP patent infringement. The deal grants Moderna a global non-exclusive license to Arbutus’ LNP technology and prompts evaluation of a Q3 2026 shareholder capital return.
1. Settlement Overview
Arbutus Biopharma and Genevant Sciences have agreed to a $2.25 billion global settlement with Moderna to resolve all U.S. and international enforcement actions over use of their lipid nanoparticle delivery technology in COVID-19 vaccines.
2. Financial Terms
Moderna will pay Arbutus $950 million upfront in July 2026 and an additional $1.3 billion contingent upon a favorable appellate ruling on Section 1498, which could make it the largest pharmaceutical patent settlement.
3. License and Litigation
Under the agreement, Arbutus grants Moderna a global non-exclusive license to its LNP delivery technology for SM-102-containing mRNA vaccines and a covenant not to sue, ending the dispute over those patents while litigation with Pfizer/BioNTech continues.
4. Capital Return Consideration
Arbutus is evaluating a return of capital to shareholders in the third quarter of calendar year 2026, leveraging the upfront settlement proceeds to potentially enhance shareholder value.