A recently disclosed contract reveals that the U.S. government received millions of dollars in licensing fees from Moderna, Inc. The company paid the National Institutes of Health (NIH) $400 million to use NIH’s spike protein technology in Moderna’s Spikevax messenger RNA (mRNA) COVID-19 biologic.
The large payment was part of a royalty-bearing license agreement negotiated between Moderna and the NIH in December 2022. The Epoch Times received a copy of the contract through a Freedom of Information Act (FOIA) request. While certain portions of the contract were redacted, including a clause stating that Moderna would pay “low single digit royalties” on future sales of the COVID shots, the document revealed that the NIH would receive royalties in late 2022,3 as well as annual royalties of an undisclosed amount.4
NIH’s National Institute of Allergy and Infectious Disease (NIAID ) is to receive a “catch-up” non-refundable royalty in the amount of $400 million from Moderna for the use of its molecular technique. The molecular technique aims to stabilize the SARS-COV2 spike protein in order to create a strong immune response in vaccine recipients. The spike protein technology is jointly owned by the NIH and Dartmouth University’s Geisel School of Medicine, and both are named in the contract along with Moderna.5 6
Moderna and the NIAID began working together on this technology in 2016 and previously published a study using the spike protein from MES-CoV, a similar virus to SARS-COV2, in 2017.7
Duane Compton, PhD, Dean at the Geisel School of Medicine at Dartmouth College said:
We are excited about how these funds will amplify this important mission at Geisel and for how it will support our training programs for the next generation of biomedical researchers.8
NIH and Moderna Spar over Patent Rights
There has been a lingering dispute between Moderna and the NIH over who developed the spike protein used in Moderna’s Spikevax shot. Moderna attempted to file a principal patent on the entirety of the mRNA sequence fund in their vaccine by claiming its scientists developed the sequence. The NIH disputes their claim and argues that government scientists developed the technology and gave it to the vaccine maker.9
Moderna’s CEO, Stéphane Bancel, testified before Congress on March 23 saying that his company developed the same spike protein that NIH developed but did not patent it due to disagreements with NIH.10
The former director of NIH, Francis Collins, MD, PhD said:
I think Moderna has made a serious mistake here in not providing the kind of co-inventorship credit to people who played a major role in the development of the vaccine that they’re now making a fair amount of money off of.11
Bancel argued:
We have abandoned that patent, the NIH is aware of it, and we are moving on because we cannot agree on what happened. The mRNA molecule was designed by the Moderna team. It is our technology.12
One Hand Washes the Other with Public-Private Business Partnerships Between Government and Pharma
While there may be a dispute over who originally developed the spike protein for Spikevax, it Is clear that NIH and Moderna worked together to develop and manufacture the product. The symbiotic financial relationship between the government and the private company appears to exist in all steps of the COVID vaccine roll-out process. It started with $10 billion dollars of taxpayer funds going to Moderna to help create and test the novel biologic.13
Government scientists may have originally developed the spike protein technology ultimately used by Moderna in Spikevax.14 In order to aid in the distribution of the Spikevax shots to the public, the Department of Defense (DoD) and the U.S. Department of Health and Human Services (DHHS) paid $1.74 billion to Moderna for 65 million doses of Spikevax in the summer of 2022.15 Now it is revealed that Moderna paid $400 million to the NIH for the development of the spike protein technology used in Spikevax.
The government contracts with Moderna helped the vaccine manufacturer develop the COVID shots resulting in an almost $37 billion dollar windfall for the company with $5 billion in revenue projected for 2023 as the company plans on raising the price of the vaccine by 400% going forward.16 17
The collaboration between NIH and Moderna in the development of Spikevax is another example of the lucrative public-private business partnership between the U.S. government and pharmaceutical companies.18 19 20
Barbara Loe Fisher, co-founder and president of the National Vaccine Information Center (NVIC), observed:
Perhaps the greatest change I have seen in vaccine regulation, policymaking and law over the past four decades has been the development of public-private business partnerships between Big Pharma and the government. That seismic change has affected how new vaccines are developed, licensed and regulated and is influencing what we see happening today.21
**Source: U.S. Government Pockets $400 Million from Moderna mRNA COVID Shots – The Vaccine Reaction