Arbutus Biopharma Corp. (ABUS) saw its stock tumble after the European Patent Office (EPO) revoked one of its key lipid nanoparticle (LNP) patents, EP2279254, after years of opposition proceedings initiated by Moderna and Merck affiliates.
The decision, delivered verbally by the EPO's Board of Appeal, overturned earlier rulings that had upheld the patent in amended form. While detailed reasoning has not yet been published, the revocation raises significant uncertainty around Arbutus' intellectual property portfolio, particularly in RNA-based therapeutics and vaccine delivery technologies.
The revoked patent had been central to Arbutus's licensing and litigation strategy, underpinning its claims in ongoing disputes with Moderna over mRNA vaccine technology. Without this protection, the company's leverage in future negotiations and potential royalty streams could be diminished.
Arbus clarified that the EPO's decision is based on a standard of added matter not applicable in the United States, Japan, or Canada, and does not anticipate an effect on its U.S., Japanese, or Canadian patent infringement litigation against Moderna.
Arbutus stated in a regulatory filing that it intends to petition for review once the written decision is available. Management emphasized that the company retains a broader portfolio of patents covering LNP technology, but investors reacted sharply to the immediate setback.The company ended the third quarter of 2025 with cash and cash equivalents of approximately $93.7 million.
ABUS has traded between $2.71 and $5.10 over the past year. The stock is currently trading at $3.79, down 19.05%.
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