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Delaware City Today
By the People, for the People
Moderna to Pay Up to $2.25B to Settle COVID Vaccine Patent Dispute
The deal ends years of legal challenges over the technology that made Moderna's COVID-19 vaccine possible.
Published on Mar. 4, 2026
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Moderna has agreed to pay up to $2.25 billion to settle a long-running legal dispute with Genevant Sciences and Arbutus Biopharma over the lipid nanoparticle technology used in Moderna's COVID-19 vaccine. The deal resolves all U.S. and international legal actions accusing Moderna of using the technology without permission.
Why it matters
The settlement removes the risk of potentially high royalty payments for Moderna on its COVID-19 and future COVID/flu combination vaccines, allowing the company to avoid a costly legal battle. It also highlights the ongoing patent disputes in the lucrative COVID-19 vaccine market, with multiple companies seeking a share of the tens of billions in sales.
The details
Under the deal, Moderna will pay $950 million upfront in July 2026, with an additional $1.3 billion that depends on the outcome of a separate legal appeal. Moderna said it would not owe Genevant and Arbutus any royalties for the lipid nanoparticle technology in its future vaccines. The lipid nanoparticles act as a protective shell that helps the mRNA in Moderna's vaccine reach human cells intact.
- Moderna will pay the $950 million upfront in July 2026.
- The additional $1.3 billion payment depends on the outcome of a separate legal appeal.
The players
Moderna
An American biotechnology company that developed one of the first COVID-19 vaccines.
Genevant Sciences
A subsidiary of Roivant Sciences that owns the lipid nanoparticle technology used in Moderna's COVID-19 vaccine.
Arbutus Biopharma
A biopharmaceutical company that also owns the lipid nanoparticle technology used in Moderna's COVID-19 vaccine.
What they’re saying
“The settlement "removes the worst-case scenario" of potentially double-digit royalty rates, and it also eliminates any future royalty risk for Moderna's upcoming COVID and COVID/flu combo vaccines.”
— Andrew Tsai, Jefferies analyst (delawareonline.com)
What’s next
The deal resolves all U.S. and international legal actions accusing Moderna of using the lipid nanoparticle technology without permission. Genevant and Arbutus had a similar lawsuit against Pfizer and BioNTech over the same technology, which is still ongoing.
The takeaway
This settlement highlights the ongoing patent disputes in the lucrative COVID-19 vaccine market, with multiple companies seeking a share of the tens of billions in sales. It allows Moderna to avoid a costly legal battle and focus on developing its next-generation COVID and COVID/flu combination vaccines without the risk of high royalty payments.
