Moderna settles patent lawsuits over COVID vaccine for $950 million

Moderna said it settled patent lawsuits over its blockbuster COVID-19 vaccine for $950 million, with another $1.3 billion payout possible depending on the outcome of a federal appeal.

The Cambridge-based drug maker said the deal settles "all worldwide" litigation related to certain drugs and it won't have to pay royalties to other companies.

As big as the settlement is, investors cheered the deal, as shares jumped 10% on the news before markets opened Wednesday.

"Resolving this legacy matter from our pandemic response removes uncertainty and allows us to turn our full focus to Moderna's exciting near-term future," Stéphane Bancel, chief executive of Moderna, said in a press release.

Arbutus Biopharma and Genevant Sciences GmbH sued Moderna last year, arguing the company had used their technology for the COVID vaccine.

There have been a slew of patent lawsuits in the wake of the pandemic, including by Moderna.