Moderna Inc. (NASDAQ:MRNA) shares are up during Wednesday’s premarket session following a settlement agreement with Arbutus Biopharma Corporation (NASDAQ:ABUS) and Roivant Inc.’s (NASDAQ:ROIV) Genevant Sciences.
Moderna Settles For $950 Million, Eyes Future Growth
The COVID-19 vaccine maker reached a settlement agreement that resolves all litigation related to its COVID-19 vaccine, Spikevax, and its mRESVIA product.
Moderna will make a lump sum payment of $950 million in the third quarter.
The company may face additional payments of up to $1.3 billion, depending on the outcome of a legal appeal regarding government-contractor immunity.
The company said that if the $1.3 billion payment is realized, it would be the largest disclosed patent settlement paid in the pharmaceutical industry and the second largest in any industry.
CEO Stéphane Bancel emphasized that resolving this legacy matter allows the company to concentrate on its near-term future.
Moderna expects to end 2026 with $4.5 billion to $5 billion in cash and cash equivalents.
“In 2026, we will return to revenue growth and end the year with a strong balance sheet, with more than $5 billion in liquidity, as we drive toward breakeven in 2028,” Bancel commented on Tuesday.
Analyst View On Moderna
Moderna shares are trading up after the settlement value was better than feared.
William Blair noted that investors were contemplating the impact of Moderna being liable for close to $5 billion in projected liability.
Analyst Myles Minter noted that a judgment granting payment of such magnitude could raise potential liquidity concerns.
Analyst Minter sees Moderna moving past litigation overhang. It now has certainty that it is well funded through multiple late-stage oncology readouts expected in 2026.
William Blair reiterates the Market Perform rating on Moderna.
Moderna’s Latest Legal Battle
In February, BioNTech SE (NASDAQ:BNTX) filed a patent infringement lawsuit against Moderna.
The lawsuit alleged that Moderna’s mNEXSPIKE relies on proprietary technology developed and patented by BioNTech.
Earnings
Moderna reported a fourth-quarter loss of $2.11, beating the expected loss of $2.59, lower than a loss of $2.91 a year ago.
The COVID-19 vaccine maker reported quarterly sales of $678 million, topping the expected $626.097 million.
MRNA Shows Strength Above Key SMAs
The stock is currently trading 4.5% above its 20-day simple moving average (SMA) and 5.2% above its 100-day SMA, indicating short-term strength.
Over the past 12 months, shares have increased significantly and are currently positioned closer to their 52-week highs than lows, reflecting a positive long-term trend.
Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $34.40. Recent analyst moves include:
- Piper Sandler: Overweight (Raises Target to $69.00) (Feb. 23)
- Goldman Sachs: Neutral (Raises Target to $41.00) (Feb. 17)
- RBC Capital: Sector Perform (Raises Target to $30.00) (Feb. 17)
MRNA Price Action: Moderna shares were up 8.85% at $54.24 during premarket trading on Wednesday. The stock is trading near its 52-week high of $55.20, according to Benzinga Pro data.
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