Moderna Loses Challenge to Arbutus Patent on Vaccine Technology

(Reuters) – Moderna Inc’s shares fell nearly 10% after losing a bid to invalidate a US patent owned by Arbutus Biopharma that represents a potential obstacle to Moderna’s efforts to develop next-generation vaccines, including a coronavirus vaccine. .

An administrative court led by the United States Patent and Trademark Office rejected Moderna’s arguments that an Arbutus patent known as the ‘069 patent should be revoked because it described obvious concepts.

The ‘069 patent refers to lipid nanoparticle (LNP) technology that enables the human body to produce its own therapeutic proteins.

LNP technology is crucial to Moderna’s vaccine development efforts, and the patent ruling could increase pressure on the Cambridge, Massachusetts-based firm to pay a license for Arbutus’ patent portfolio, Zachary Silbersher said , a patent attorney in New York who did not involve the case. .

Silbersher said it was unclear whether the vaccines developed by Moderna, including its coronavirus vaccine, infringe the ‘069 and related patents owned by Arbutus. But Moderna’s effort to invalidate the patent suggests that the company sees it as a potential obstacle, he said.

“At the end of the day, Arbutus could claim a royalty on the [coronavirus] vaccine, “Silbersher said.

The ruling was a “disappointing turn” for Moderna, but is not likely to have an immediate financial impact on the company, SVB Leerink analysts said in a note.

Moderna can still appeal the ruling of the patent office to the United States Court of Appeals for the Federal Circuit. That court, however, often upholds the determinations of the patent office.

Moderna received funding from the United States government to develop a coronavirus vaccine.

Arbutus’ shares more than doubled after the patent board published his opinion in his electronic file, to $ 6.20 on Nasdaq. Moderna shares lost 9.5% to end at $ 75.33, also on Nasdaq.

Moderna did not immediately respond to a request for comment from Reuters.