Moderna to Pay Up to $2.25B to Settle COVID Vaccine Patent Dispute

Moderna reaches deal with Genevant Sciences and Arbutus Biopharma over technology used in its COVID-19 vaccine.

Published on Mar. 4, 2026

Got story updates? Submit your updates here. ›

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 technology used in Moderna's COVID-19 vaccine. 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.

Why it matters

The settlement removes a major legal risk for Moderna, eliminating the possibility of potentially high royalty payments to Genevant and Arbutus for the lipid nanoparticle technology used in Moderna's COVID-19 vaccine. This provides more certainty around Moderna's future vaccine revenue and profit margins.

The details

The deal resolves all U.S. and international legal actions accusing Moderna of using lipid nanoparticle (LNP) delivery technology owned by Genevant and Arbutus without permission. LNP technology acts as a protective shell that helps fragile mRNA molecules reach human cells intact, allowing Moderna's COVID-19 vaccine to work as intended. Moderna will not owe the companies any royalties for LNP technology in its future vaccines under the agreement.

  • Moderna will pay $950 million upfront in July 2026.
  • An 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 delivery technology used in Moderna's COVID-19 vaccine.

Arbutus Biopharma

A biopharmaceutical company that also owns the lipid nanoparticle delivery technology used in Moderna's COVID-19 vaccine.

Got photos? Submit your photos here. ›

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 (Reuters)

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 filed a similar lawsuit against Pfizer and BioNTech over the same technology, but that lawsuit is still ongoing.

The takeaway

This settlement provides more certainty around Moderna's future vaccine revenue and profit margins, as it eliminates the risk of potentially high royalty payments to Genevant and Arbutus for the technology used in Moderna's COVID-19 vaccine. It highlights the complex patent landscape surrounding COVID-19 vaccine technology.