What Happened?
Shares of biotechnology company Moderna (NASDAQ:MRNA) jumped 17.4% in the afternoon session after the company settled a long-running patent dispute over the technology used in its COVID-19 vaccine.
Moderna agreed to pay Arbutus Biopharma and Genevant Sciences up to $2.25 billion to resolve the legal battle. This settlement removed a major legal and financial uncertainty that had weighed on the company's stock. The agreement also provided clarity for Moderna's entire infectious disease portfolio, confirming no future royalties would be owed. In addition to the settlement news, the company received a positive opinion from the European Medicines Agency for its combination vaccine designed to protect against both influenza and COVID-19 in individuals aged 50 and older.
The shares closed the day at $57.86, up 16.1% from previous close.
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What Is The Market Telling Us
Moderna’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. But moves this big are rare even for Moderna and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 14 days ago when the stock gained 5.9% on the news that the U.S. Food and Drug Administration (FDA) reversed an earlier decision and agreed to review the company's application for its new seasonal flu vaccine.
The move came about a week after the agency had issued a "refusal to file" letter, initially declining to consider the vaccine candidate, mRNA-1010. Following a meeting with regulators, Moderna revised its application with a new approach based on age. The company sought full approval for adults aged 50 to 64 and accelerated approval for those 65 and older. The FDA accepted the amended application and set a target decision date of August 5, 2026. If approved, Moderna aimed to make the vaccine available for the 2026-2027 flu season, removing a significant regulatory hurdle.
Moderna is up 87.7% since the beginning of the year, and at $57.93 per share, has set a new 52-week high. Investors who bought $1,000 worth of Moderna’s shares 5 years ago would now be looking at an investment worth $437.82.
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