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Moderna Announces COVID-19 Jab Patent License Agreement With U.S. Government


Moderna announced Thursday that it reached a patent license agreement with the U.S. government over the experimental COVID-19 shot.

During an earnings call, CFO Jamey Mock said Moderna “entered into a nonexclusive patent license agreement with the National Institute of Allergy and Infectious Diseases, an institute or center of the NIH, to license certain patent rights concerning stabilizing prefusion coronavirus spike proteins and the resulting stabilized proteins for the use in COVID-19 vaccine products or 2P technology.”

“Pursuant to the agreement, we have agreed to pay low single digit royalties on future net sales of our COVID-19 vaccines.”

“A key driver of the increase in cost of sales as a percent of product sales was a catch up royalty payment to the National Institutes of Health or NIH of $400 million, representing 8% of product sales in the fourth quarter,” Mock added.

CCO Arpa Garay said the company expects “commercial market volumes to be approximately 100 million doses in 2023, and Moderna’s commercial organization is prepared for the transition to a commercial endemic market.”

CBS News Staff Digital Reporter Tin Alexander shared transcripts on Twitter from the earnings call for investors.


Moderna stated:

Fourth Quarter and Full Year 2022 Financial Results

Revenue: Total revenue for the fourth quarter of 2022 was $5.1 billion, compared to $7.2 billion in the same period in 2021, mainly due to a decrease in sales of the Company’s COVID-19 vaccines. Product sales for the fourth quarter of 2022 were $4.9 billion, a decrease of 30% compared to the same period in 2021, primarily driven by lower sales volume, compared to overall higher demand in the prior year and the related manufacturing ramp up in the fourth quarter of 2021.

Cost of Sales: Cost of sales was $1.9 billion, or 39% of product sales, for the fourth quarter of 2022, including third-party royalties of $604 million, of which $400 million related to a catch-up payment to the National Institute of Allergy and Infectious Diseases (NIAID) for a new royalty-bearing license agreement executed in December. The agreement provides for low single-digit royalties on future COVID-19 vaccine sales. Cost of sales, as a percentage of product sales, increased by 25 percentage points, from 14% in the same period in 2021. The increase was driven by increased royalties, a charge of $297 million for inventory write-downs related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives prior to being used, a loss on firm purchase commitments and related cancellation charges of $281 million, and an expense for unutilized manufacturing capacity and related contract manufacturing organization charges of $376 million. These charges, other than royalties, are driven by costs associated with surplus production capacity, overall lower demand and a shift to our most recent Omicron-targeting COVID-19 bivalent booster, mRNA-1273.222

It’s an egregious conflict of interest between Big Pharma and the U.S. federal government.

Federal government employees share profits with pharmaceutical companies on products developed with taxpayer dollars.

The Epoch Times reported:

The Epoch Times has filed a Freedom of Information Act request for the agreement.

NIAID was headed for decades by Dr. Anthony Fauci, who retired around the end of 2022.

The disclosure means the government was paid shortly before telling a court that it, not Moderna, should face a lawsuit over patent infringement.

NIH Says Wrongly Left Off Patent

U.S. government researchers were wrongly left off of a patent filing for a key sequence that’s part of the vaccine, according to government officials.

NIH scientists were working with Moderna for four years on vaccines for diseases before the pandemic started. After COVID-19 emerged, the NIH and Moderna collaborated to develop the COVID-19 vaccine, both parties have said.


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