A big legal victory across the Atlantic Ocean was the news propelling Moderna (MRNA 3.82%) stock to a significant price surge on Hump Day. The win by the company, best known as the producer of the Spikevax COVID vaccine, pushed its stock nearly 16% higher during the trading session. By contrast, the S&P 500 (^GSPC 0.55%) could only muster a 1.1% gain.
A court decision from Europe
Earlier that day, a court in Düsseldorf, Germany ruled that a COVID patent held by Moderna had been violated by a pair of rivals, American pharmaceutical giant Pfizer and its partner, German biotech BioNTech. The two had collaborated on developing and bringing to market another go-to COVID jab during the pandemic, ultimately brand-named Comirnaty.
Those two companies will have to reach into their coffers to compensate Moderna. The court said both Pfizer and BioNTech will be required to provide information on earnings that derived from the use of the patent in question; this will be used to determine how much they’ll have to pay.
The ruling is subject to appeal. None of the three companies has yet commented publicly on it.
Unambiguous victory
In addition to the compensatory payment, which might end up being rather large, Moderna establishes something of a precedent with this ruling. It should carry at least some weight in similar cases, should the company care to pursue them. Regardless, on its own the German court’s decision is a clear legal victory, and it gives strength to the company’s most critical intellectual property.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool recommends BioNTech Se and Moderna. The Motley Fool has a disclosure policy.
