Arbutus Biopharma (ABUS) Patent Revocation Leads to 14% Pre-Market Drop

Written by Emily J. Thompson, Senior Investment Analyst

Source: seekingalpha

Updated: Jan 16 2026

0mins

ABUS+2.66%

MRNA+6.65%

Should l Buy ABUS?

Source: seekingalpha

Patent Revocation Impact: Arbutus Biopharma's patent was revoked by the European Patent Office, leading to a ~14% drop in pre-market stock price on Friday, which directly affects its legal disputes with Moderna and Genevant Sciences.
Moderna Stock Reaction: In contrast, Moderna's stock rose by ~4%, indicating a positive market reaction to the patent revocation, potentially alleviating its legal risks in Switzerland and the Unified Patent Court.
Legal Proceedings Outlook: Arbutus stated that the ruling will impact its cases against the COVID-19 vaccine maker alongside its partner Genevant Sciences, with plans to file a petition for review in the coming months, demonstrating the company's commitment to its legal battles.
Market Reaction Analysis: This patent revocation not only affects Arbutus's stock performance but may also have far-reaching implications for its future revenues and competitive position, especially in the context of competing against larger pharmaceutical companies.

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Analyst Views on ABUS

Wall Street analysts forecast ABUS stock price to rise

1 Analyst Rating

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 4.130

Low

7.00

Averages

7.00

High

7.00

Current: 4.130

Low

7.00

Averages

7.00

High

7.00

Jefferies

Dennis Ding

Buy

maintain

2026-02-02

Reason

Jefferies

Dennis Ding

Price Target

AI Analysis

2026-02-02

maintain

Buy

Reason

Jefferies analyst Dennis Ding notes that Judge Wolson issued summary judgment on three matters in a patent fight between Arbutus Biopharma (ABUS) and Moderna (MRNA). While the analyst says two of the three rulings were in-line with the firm's thinking going into summary judgment, the judgement in favor of Moderna that Arbutus cannot claim infringement under the "doctrine of equivalents" seemed "interesting" as the Judge basically is implying Arbutus needs to meet a higher bar to prove infringement. However, this "shouldn't technically change the outcome" since the firm believes Moderna's LNP components lie within Arbutus' patented range, the analyst added. The firm has a Buy rating on Arbutus shares and a Hold rating on Moderna.

Chardan Capital

Keay Nakae

Strong Buy

Maintains

2025-03-28

Reason

Chardan Capital

Keay Nakae

Price Target

2025-03-28

Maintains

Strong Buy

Reason

About ABUS

Arbutus Biopharma Corporation is a clinical-stage biopharmaceutical company focused on infectious disease. The Company is developing imdusiran (AB-729), its proprietary, conjugated GalNAc, subcutaneously delivered RNAi therapeutic, and AB-101, its proprietary oral PD-L1 inhibitor, for the treatment of chronic hepatitis B (cHBV). Its HBV product pipeline includes Imdusiran and AB-101. Its pipeline includes two product candidates that target various steps in the HBV viral lifecycle and consists of various programs: RNAi therapeutic (imdusiran, AB-729) and Oral PD-L1 Inhibitor (AB-101). RNAi therapeutics utilize a natural pathway within cells to silence genes by eliminating the disease-causing proteins that they code for. PD-L1 inhibitors complement its pipeline of agents and could potentially be a part of a combination therapy for the treatment of HBV by reawakening the immune system.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Delaware Judge Dismisses Key Defenses in Moderna Patent Case

1 day agoseekingalpha

Patent Defense Dismissed: Delaware Judge Joshua Wolson has dismissed two key defenses raised by Moderna in its ongoing patent litigation against Arbutus Biopharma, particularly the defense based on obviousness, stating that Moderna failed to raise these claims in prior inter partes review, thus barring them from asserting them in this case.
Impact of IPR Estoppel: The judge emphasized that IPR estoppel prevents defendants from raising obviousness claims made in an IPR proceeding, which Moderna already lost, further weakening its position in the litigation.
Issue Preclusion Defense Fails: Moderna's other defense, based on issue preclusion, argued that the patent subject matter was not actually invented by Arbutus; however, the judge noted that Moderna failed to demonstrate prior conception by another, with its own expert conceding that an Arbutus scientist encapsulated mRNA in lipid nanoparticles before Moderna did.
Enablement Defense Allowed: Despite facing significant setbacks, the judge has allowed Moderna's enablement defense to proceed, asserting that enablement ensures adequate disclosure of the claimed invention and prevents claims broader than what is disclosed, potentially providing Moderna with a continued avenue for defense.

Arbutus Biopharma Shares Rise 10% After Patent Ruling

Feb 02 2026seekingalpha

Patent Dispute Update: A federal judge in Delaware ruled that the patent dispute involving Moderna's mRNA COVID-19 vaccine should be settled in a jury trial, leading to a ~10% rise in Arbutus Biopharma's stock, reflecting market optimism about its potential success.
Judge's Ruling Details: Judge Joshua Wolson noted that the prosecution history of some of Arbutus's patents limits its doctrine-of-equivalents claims based on Moderna's vaccine, indicating that Arbutus must prove literal infringement to succeed, adding complexity to the case.
Jury Trial Timeline: The jury trial is set to begin in March next year, a timeline that may influence Arbutus's stock volatility, prompting investors to closely monitor the case's developments and its potential impact on the company's future.
Technical Context: The dispute centers on the lipid nanoparticle (LNP) delivery technology developed by Arbutus and Genevant Sciences, which is crucial for preventing mRNA degradation; a favorable ruling for Arbutus could significantly impact Moderna's vaccine production.

Health Care Stocks Decline as NYSE Health Care Index Eases 0.5%

Jan 16 2026Yahoo Finance

Overall Decline in Health Care Stocks: Late Friday afternoon, health care stocks broadly declined, with the NYSE Health Care Index easing 0.5%, reflecting a weakening market confidence in the sector that could impact short-term investor decisions.
Market Sentiment Fluctuations: The drop in health care stocks may be linked to overall market sentiment fluctuations, as increased uncertainty regarding economic prospects leads to capital outflows from the health sector, affecting industry capital flows.
Investor Focus Shift: As health care stocks decline, investors may reassess their portfolios, considering reallocating funds to other sectors with greater growth potential, which could impact capital inflows into the health industry.
Uncertain Future Outlook: The short-term performance of the health care sector may be influenced by policy changes and market dynamics, necessitating investors to closely monitor relevant policies and market trends to make timely investment decisions.

Arbutus Biopharma (ABUS) Patent Revocation Leads to 18% Stock Crash

Jan 16 2026stocktwits

Patent Revocation Impact: The European Patent Office revoked Arbutus's EP 2279254 patent on January 15, causing its stock to plummet over 18% on Friday, marking the largest intraday decline since July 2020, indicating market concerns about the company's future legal standing.
Legal Response Plan: Arbutus plans to seek a review from the Enlarged Board of Appeal, asserting that the ruling will not affect its patent infringement cases against Moderna in the U.S., Canada, and Japan, demonstrating its confidence in ongoing legal battles.
Market Reaction: Despite the sharp decline in stock price, retail sentiment on Stocktwits shifted from bearish to bullish, with some users viewing the drop as an opportunity to establish new positions, reflecting divergent views on the company's long-term prospects.
Competitor Dynamics: While Arbutus's stock fell, Moderna's shares rose by 7%, and Merck's fell by 2%, highlighting varying market reactions to competitors that could influence Arbutus's competitive position moving forward.