 Moderna Inc NASDAQ: MRNA shares came under significant selling pressure Thursday afternoon following an adverse patent ruling, and the stock is adding to the losses in Fridays session. Moderna Loses Patent Challenge: In an ongoing legal dispute, the Patent Trial and Appeal Board ruled against Modernas challenge to the patentability of Arbutus Biopharma Corps NASDAQ: ABUS ABUS069 patent.The 069 patent covers liquid nanoparticle formulations, or LNPs, meant for nucleic acid delivery, which is used by Moderna in its vaccine candidates.The patent describes the composition of nucleic acid-lipid particles and the ranges in which the different lipid particle components can be combined for effective delivery of nucleic acid sequence payload.Moderna holds four non-exclusive viral vaccine sublicenses of Arbutus-issued LNP delivery technology. Each one allows for the use of pre-April 15, 2010 LNP patent families and is limited to a specific viral target, Chardan analyst Keay Nakae said in a note. These sub-licenses would not be applicable to Modernas mRNA-1273, the analyst said. Potential Impact On Moderna: The sell-side is in wait-and-watch mode as investors digest the development.This legal dispute has been an ongoing debate among investors, and todays decision is a disappointing turn for MRNA, said SVB Leerink analyst Mani Foroohar said in a note reviewing the development. The analyst initiated coverage of Moderna shares on Thursday. This could lead to a protracted period of investor controversy and debate around the implications of any potential infringement claims by Arbutus regarding Modernas use of LNP delivery technology in its investigational vaccines, and any further actions Moderna may take to defend its own IP position, the analyst said. Discussions around the ruling will also involve IP and potential royaltyeconomic claims by Arbutus on Moderna, he said.Foroohar sees any meaningful royalty burden as hampering Modernas pricing flexibility and margin versus other players in the SARS-CoV-2 vaccine race.This could potentially aggravate downside implications should a HCV-like competitive pricing dynamic emerge, the analyst said. We continue to watch this emerging dynamic closely, but do not explicitly model any royalty burden, settlement or other financial impact in our MRNA model at this time. MRNA Price Action: At last check, Moderna shares were slipping by 7.22 to 72.13 after plunging about 10 Thursday.Arbutus shares were down 7.9 at 5.71 at last check. Related Links:The Week Ahead In Biotech: Jazz Awaits FDA Nod For Sleep Disorder Drug, Earnings Trickle In, ACell IPO 5 Coronavirus Stock Valuations Surging During The Pandemic Latest Ratings for MRNA DateFirmActionFromTo Jul 2020SVB LeerinkInitiates Coverage OnMarket Perform Jul 2020JP MorganDowngradesOverweightNeutral Jul 2020Chardan CapitalMaintainsBuy View More Analyst Ratings for MRNA View the Latest Analyst Ratings See more from Benzinga The Daily Biotech Pulse: Mixed Tidings From Novavax, Radius Health Out-licenses Breast Cancer Drug, 3 IPOs Novavax Shares Rebound Amid Coronavirus Vaccine UpdateC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 