Moderna Inc. and Arbutus Biopharma Corp. have reached a settlement in their patent dispute over lipid nanoparticle (LNP) technology used in Moderna’s COVID-19 vaccines. The agreement, announced on March 3, 2026, involves a payment of up to $2.25 billion from Moderna to Arbutus and its partner, Genevant Sciences.
Under the terms of the settlement, Moderna will pay $950 million upfront, with an additional $1.3 billion contingent upon the outcome of an appeal concerning the applicability of 28 U.S.C. § 1498. This statute pertains to government contractor indemnification, and its interpretation has been a central issue in the litigation. If the appeal favors Arbutus and Genevant, the total settlement would represent one of the largest patent settlements in the pharmaceutical industry. ([globenewswire.com](https://www.globenewswire.com/news-release/2026/03/03/3248939/14025/en/genevant-sciences-and-arbutus-biopharma-announce-2-25-billion-global-settlement-with-moderna.html?utm_source=openai))
The dispute centered on Arbutus’s allegations that Moderna’s COVID-19 vaccines utilized LNP technology covered by Arbutus’s patents without authorization. LNPs are crucial for delivering messenger RNA (mRNA) into human cells, a fundamental component of Moderna’s vaccine platform. ([ipwatchdog.com](https://ipwatchdog.com/2026/03/04/moderna-settles-genevant-arbutus-ending-lnp-patent-dispute/?utm_source=openai))
Prior to the settlement, the U.S. District Court for the District of Delaware issued rulings that significantly impacted the case. The court determined that the phrase “for the Government” in Section 1498 means the use of a patented product must be for the benefit of the government itself, not the patients who receive it. This interpretation limited Moderna’s ability to use Section 1498 as a defense for the majority of its vaccine sales to the U.S. government. ([ipwatchdog.com](https://ipwatchdog.com/2026/02/04/judge-wolson-issues-key-summary-judgment-ruling-eve-trial-arbutus-moderna/?utm_source=openai))
Additionally, the court ruled that Arbutus’s removal of the term “about” from its claimed lipid ranges during patent prosecution invoked prosecution history estoppel. This decision required Arbutus to prove infringement based on a literal infringement standard, rather than under the doctrine of equivalents. ([ipwatchdog.com](https://ipwatchdog.com/2026/02/04/judge-wolson-issues-key-summary-judgment-ruling-eve-trial-arbutus-moderna/?utm_source=openai))
As part of the settlement, Moderna has consented to a judgment of infringement and no invalidity for the four patents asserted by Arbutus and Genevant. In return, Genevant has granted Moderna a global non-exclusive license to its LNP delivery technology for infectious disease applications, effectively ending all related patent-infringement litigation. ([globenewswire.com](https://www.globenewswire.com/news-release/2026/03/03/3248939/14025/en/genevant-sciences-and-arbutus-biopharma-announce-2-25-billion-global-settlement-with-moderna.html?utm_source=openai))
This resolution underscores the complexities of patent rights in the rapidly evolving field of mRNA technology and highlights the significant financial implications of intellectual property disputes in the pharmaceutical industry.