European Patent Office ruling ‘clear win’ for Moderna, says Citi

Citi says the European Patent Office Board of Appeal invalidated a key Arbutus Biopharma (ABUS) delivery technology patent, which is a “clear win” for Moderna (MRNA). The invalidation neutralizes a “significant legal threat” for Moderna before the Unified Patent Court and reduces its potential royalty exposure on the continent, the analyst tells investors in a research note. However, Citi believes Moderna’s U.S. patent battle remains the primary overhang on the shares. It keeps a Neutral rating on the stock with a $28 price target.