Moderna loses bid to shift liability in COVID-19 vaccine patent case

Arbutus Biopharma

10/03/2023 23:31

By Blake Brittain
       March 10 (Reuters) - Despite the backing of the U.S.
government, Moderna Inc  MRNA.O  on Friday failed to persuade a
federal judge it should not have to face a patent lawsuit over
its COVID-19 vaccine and that the United States should have been
sued instead. 
    U.S. District Judge Mitchell Goldberg ruled for the second
time that Moderna had not yet shown that the government was the
proper target of a lawsuit by Arbutus Biopharma Corp  ABUS.O 
and Genevant Sciences GmbH.
    A spokesperson for Genevant declined to comment on the
decision. Representatives for Moderna, the U.S. Food and Drug
Administration and the U.S. Department of Health and Human
Services did not immediately respond to requests for comment
Friday.
    Warminster Township, Pennsylvania-based Arbutus and Genevant
— a joint venture between Arbutus and Roivant Sciences Ltd
 ROIV.O  — sued Cambridge, Massachusetts-based Moderna for
patent infringement last year, seeking royalties from Moderna's
multi-billion-dollar COVID vaccines. 
    Moderna asked the court to dismiss the case last May. It
said the United States was the proper target of the claims
because the company made its vaccine for the government's
nationwide vaccination effort, citing a law that was previously
used to keep patent disputes from interfering with the supply of
war materials during World War One.
    Goldberg first ruled against Moderna in November. He said
Moderna had not yet shown that the shots were made "for the
government," and that the government may have been an
"incidental beneficiary" instead.
    The U.S. Justice Department said in a court filing last
month that it supports Moderna's position, arguing that the
company should not be liable for shots provided under its
contract with the government as part of Operation Warp Speed.
    Goldberg ruled Friday that Moderna's request was still
premature and said details were still emerging about the scope
of the company's government agreements.
    The case is Arbutus Biopharma Corp v. Moderna Inc, U.S.
District Court for the District of Delaware, No. 1:22-cv-00252.

 (Reporting by Blake Brittain in Washington)
 ((blake.brittain@tr.com; +1 (202) 938-5713;))