Moderna shares jumped more than 9% in premarket trading Tuesday after the company announced a global settlement resolving all litigation with Arbutus and Genevant Sciences over its COVID-era vaccine technology. The agreement eliminates future royalty payments and provides certainty across Moderna's infectious disease portfolio, including candidates like mNEXSPIKE and mCOMBRIAX.

Under the settlement, Moderna will pay $950 million in Q3 2026 and record the charge in Q1. The company will also appeal the District Court's Section 1298 ruling, arguing government-contractor immunity limits its liability. No accrual has been booked for a potential additional payment of up to $1.3 billion, as Moderna considers such a loss "not probable."

CEO Stéphane Bancel said the resolution "removes uncertainty and allows us to turn our full focus to Moderna's exciting near-term future." Barclays analyst Eliana Merle noted the $1 billion to $2.25 billion total is "much less than investors expected." The company now projects $4.5 billion to $5 billion in cash by end-2026, plus $900 million in credit facility access, positioning it for growth and progress toward breakeven in 2028.