BY Dow Jones & Company, Inc.
— 11:58 AM ET 12/01/2021
Moderna ( MRNA ) stock just keeps finding new reasons to drop.
Shares of Moderna ( MRNA) have tumbled 10% to $316.80 after a U.S. Court of Appeals for the Federal Circuit panel of three judges upheld a ruling against the biotech company in a decision on patents that Arbutus Biopharma ( ABUS ) says it owns. the patents in question regard lipid nanoparticles, which are used to deliver mRNA to cells safely.
The decision shouldn't have been much of a surprise, according to Dennis Ding, who notes that "it's rare for an appeal to reach oral arguments and reverse a prior IPR decision."
The news, while bad for Moderna ( MRNA), has been very good for Arbutus and Roivant Sciences ( ROIV) , which owns Arbutus stock. Shares of Arbutus have gained 69%, while Roivant is up 13%.
Still, it's unclear exactly what happens next. Ding notes that Arbutus could sue Moderna ( MRNA ) over the use of its patents in the Covid-19 vaccine, but that's something that takes a lot of time and it's still unclear how a full trial would turn out. The most likely outcome? "Ultimately, we think the parties will go to court but will settle for a small royalty in due course," writes Ding, who puts a potential royalty at about 5%.
Moderna ( MRNA) stock has dropped 18% over the past three months amid concerns about Pfizer's dominance of the Covid vaccine market and a separate patent battle with the U.S. government.
Write to Ben Levisohn at email@example.com
(END) Dow Jones Newswires 12-01-21 1158ET Copyright (c) 2021 Dow Jones & Company,