Moderna Inc (NASDAQ:MRNA) shares are rising in Tuesday’s after-hours session after the company announced it reached a settlement agreement with Arbutus Biopharma and Genevant Sciences.
- Moderna shares are climbing with conviction. Why is MRNA stock up today?
Moderna Resolves Global Patent Litigation
Moderna announced Tuesday that it entered into a settlement agreement with Arbutus Biopharma and Genevant Sciences that resolves all litigation globally related to Spikevax and mRESVIA.
The agreement also provides certainty going forward for Moderna’s current infectious disease portfolio, including mNEXSPIKE and mCOMBRIAX.
“Resolving this legacy matter from our pandemic response removes uncertainty and allows us to turn our full focus to Moderna’s exciting near-term future,” said Stéphane Bancel, CEO of Moderna.
Moderna is set to make a lump sum payment of $950 million in the third quarter under the terms of the agreement. The company will then appeal to the Federal Circuit to argue its government-contractor immunity defense limits its liability.
If Moderna succeeds, no further payments will be owed. If Moderna is deemed liable, the company will make an additional payment of up to $1.3 billion within 90 days of the decision.
Moderna said it now expects to end 2026 with $4.5 billion to $5 billion in cash and cash equivalents, down from a prior forecast of $5.5 to $6 billion.
MRNA Shares Surge After The Bell
MRNA Price Action: Moderna shares were up 10.23% in after-hours, trading at $54.93 at the time of publication on Tuesday, per Benzinga Pro.
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