Moderna will issue a $950 million lump-sum payment to Arbutus Biopharma and Genevant Sciences in the third quarter of 2026 as part of a comprehensive agreement resolving all litigation on its Spikevax COVID-19 vaccine and mRESVIA product. An additional contingent payment of up to $1.3 billion may be owed if a pending appeal related to government-contractor immunity upholds claims against the vaccine maker.

The immediate influx of proceeds will bolster Arbutus’s cash reserves, reducing funding pressure on its clinical-stage programs and strengthening its balance sheet. Receipt of the full contingent payment would mark one of the largest patent settlements in pharma history and could transform Arbutus’s liquidity runway.

This agreement extinguishes years of patent disputes and royalty litigation between Arbutus and Moderna, enabling Arbutus to redirect resources previously earmarked for legal contingencies. Management can now focus on advancing its pipeline without encumbrance from legacy Spikevax claims.

While the settlement provides clarity on past liabilities, the potential $1.3 billion payment hinges on an uncertain appeal outcome. Investors will monitor both the appellate process and the deployment of settlement proceeds into Arbutus’s oncology and RNA therapeutic development efforts.