Roivant swings to Q4 profit on landmark Moderna litigation settlement

Roivant Sciences (NASDAQ:ROIV) reported a return to profitability for its fourth fiscal quarter ended March 31, 2026, reversing a prior-year loss due to a substantial non-recurring gain stemming from the resolution of its global patent infringement dispute with Moderna.

The company generated income from continuing operations of $355.7 million for the three-month period, rebounding from a net loss in the corresponding quarter of fiscal 2025.

For the full fiscal year 2026, Roivant’s loss from continuing operations narrowed to $397.9 million.

The bottom-line turnaround was anchored by a $770.2 million litigation gain recognized during the quarter.

The financial performance was underpinned by a comprehensive $2.25 billion global patent-litigation agreement finalized between Roivant’s subsidiary, Genevant Sciences, and Moderna.

The settlement, which resolves allegations regarding the unauthorized use of lipid nanoparticle drug delivery systems in mRNA vaccines, secures a noncontingent upfront cash payment of $950 million due by July 2026.

The remaining balance includes a contingent $1.3 billion payment, dependent on the outcome of pending federal appellate court proceedings concerning government-contractor immunity statutes.

Roivant concluded the fiscal year with a liquid balance sheet consisting of $4.3 billion in cash, cash equivalents, and short-term marketable securities.

Management indicated that this existing capital pool, which excludes the incoming noncontingent cash inflows from the Moderna settlement framework, establishes a multi-year operational runway to fund its pipeline through to target profitability thresholds.

Operational updates across Roivant’s targeted drug development platforms tracked steadily alongside the financial results.

The company reported strong initial data for its next-generation antibody asset IMVT-1402, demonstrating notable therapeutic responses in clinical trials for patients suffering from difficult-to-treat rheumatoid arthritis.

Concurrently, the regulatory pipeline achieved several distinct updates.

The U.S. Food and Drug Administration granted a Priority Review designation for the company's small-molecule inhibitor brepocitinib as a treatment for the inflammatory muscle disease dermatomyositis.

Furthermore, the same therapeutic candidate received a Breakthrough Therapy Designation from federal regulators for the treatment of cutaneous sarcoidosis, reinforcing the asset's clinical advancement timeline.