A US appeals court questioned Moderna's defense against patent claims over its COVID-19 vaccines. Moderna has paid Arbutus Biopharma and Genevant Sciences $950 million under a settlement and must pay another $1.3 billion if the court rejects its defense.
A three-judge panel of the US Court of Appeals for the Federal Circuit questioned Moderna, Arbutus Biopharma and Genevant Sciences over whether to overturn a ruling that Moderna was not immune from patent infringement claims under a law covering products made for the government. Arbutus and Genevant sued Moderna in 2022 over its Spikevax vaccine.
Moderna paid the companies $950 million in July under a March settlement and must pay an additional $1.3 billion if the Federal Circuit rejects its government-supplier defense. Moderna argues the United States should have been the defendant because it made vaccines for the federal government's Operation Warp Speed vaccination effort. The government supported Moderna's position.
A Justice Department lawyer said a ruling against Moderna would be “devastating” to government contracting efforts. Judge Richard Taranto questioned whether Moderna's argument could extend the defense to a wide range of government purchases, while Judge Jimmie Reyna asked why the vaccine shots would not be considered made for the government.
