Moderna in Trouble - ABUS Wins Lawsuit Tied to COVID-19 Drug

NASDAQ:ABUS   Arbutus Biopharma Corporation
Arbutus Biopharma Corporation, a biopharmaceutical company, engages in the discovery, development, and commercialization of a cure for patients suffering from chronic Hepatitis B virus (HBV) infection in the United States. Its HBV product pipeline consists of AB-836, a capsid inhibitor that has the potential to inhibit HBV replication by preventing the assembly of functional viral capsids; and AB-423, which is in pre-clinical studies. The company also develops RNAi drugs, which utilize the RNA interference pathway, allows for a novel approach to treating disease. Its RNAi HBV candidates are designed to reduce hepatitis B surface antigen expression in patients chronically infected with HBV. In addition, it develops AB-729, a second generation RNAi therapeutic targeted to hepatocytes; HBV RNA destabilizer, an orally active agent that cause the destabilization of HBV RNAs, which leads to RNA degradation and to reduction in HBsAg levels. Further, the company engages conducting a Phase 1a/1b clinical trial and several pre-clinical and investigational new drug-enabling studies to evaluate proprietary HBV therapeutic agents, together with standard of care therapies, and in combination with each other. It has strategic alliance, licensing, and research collaboration agreements with Marqibo; Gritstone Oncology , Inc. ; and Acuitas Therapeutics, Inc. The company was formerly known as Tekmira Pharmaceuticals Corporation and changed its name to Arbutus Biopharma Corporation in July 2015. Arbutus Biopharma Corporation is headquartered in Warminster, Pennsylvania.


Moderna stock tumbled late Thursday after the biotech lost a patent battle that may jeopardize the financial future of its coronavirus vaccine.

Moderna ( MRNA ) challenged patents held by Arbutus Biopharma ( ABUS ) covering lipid nanoparticle, or LNP, technology. Lipid nanoparticles are the delivery system for messenger RNA drugs, including Moderna's coronavirus vaccine, which is known as mRNA-1273 .

Despite the company's contention, the ruling could cut into profits on any Moderna drug, including mRNA-1273 , says SVB Leerink analyst Mani Foroohar.

"Revenue concentration in (the coronavirus vaccine) is a central feature of the investment case for Moderna shares," Foroohar said. "Any meaningful royalty burden could hamper Moderna's pricing flexibility and margin profile vs. other players in the SARS-CoV-2 vaccine market."

Foroohar called the decision in Arbutus' favor "a disappointing turn for Moderna ."

"This decision opens the door to a fascinating (and likely protracted) period of investor controversy and debate around the implications of any potential infringement of claims by Arbutus regarding Moderna's use of Lipid Nanoparticle delivery technology, and any further actions Moderna may take to defend their own (intellectual property) position and freedom to operate," he said.


Where's ABUS going? To $100.00 ...???

On the monthly chart, it looks like $9.00 might be the next stop..? At this point, I am not sure if there is a top right now for ABUS .

The news is huge for ABUS and could entitle ABUS to billions in profits and revenue from the COVID-19 vaccine.

Intelligent comments welcome.

The Content herein is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.