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Moderna announced a $750 million funding boost from Blackstone Life Sciences to its influenza mRNA vaccine program.
“We combine scale capital with deep clinical development expertise to help advance innovative medicines and technologies with the potential to transform patients’ lives. Our team invests across the life cycle of companies and products in a range of therapeutic areas,” Blackstone Life Sciences states on its website.
“Moderna on Wednesday said Blackstone’s life sciences arm would offer $750 million to help fund development of its flu vaccines, bolstering the company’s efforts to advance multiple vaccines in the face of a steep decline in sales of its COVID-19 shots,” Reuters reports.
“Blackstone Life Sciences will get commercial milestone payments and low-single digit royalties on the influenza vaccine as part of the agreement, said Moderna, whose current lone marketed product is its COVID-19 shot. Moderna will also pay Blackstone a proportional royalty on the combination vaccine against influenza and COVID, if it is approved, based on the fair value for the flu component,” Chief Nerd cited.
“Moderna on Wednesday said Blackstone’s life sciences arm would offer $750 million to help fund development of its flu vaccines, bolstering the company’s efforts to advance multiple vaccines in the face of a steep decline in sales of its COVID-19 shots.
Blackstone Life Sciences… pic.twitter.com/lsY9MgZ6oq
— Chief Nerd (@TheChiefNerd) March 27, 2024
Fierce Biotech reports:
Moderna will be using the funding infusion to subsidize the program rather than swell the amount of money available to its flu research.
“Moderna expects to recognize the funding as a reduction in research and development expenses and will retain full rights and control of the company’s flu program,” the biotech explained. “This funding does not result in any change to Moderna’s 2024 research and development framework of approximately $4.5 billion.”
Moderna CEO Stéphane Bancel said the funding agreement would contribute to the company’s goal of launching “multiple vaccine products in the next few years.”
“Achieving this ambition requires substantial investment in late-stage studies and we are excited to welcome Blackstone and their innovative financing model,” Bancel added.
Moderna’s flu program suffered some initial setbacks, with a previous version of the seasonal flu candidate mRNA-1010 failing to meet the noninferiority threshold for two influenza B strains a year ago. But by September 2023 the company was back on track, with an updated formula of the shot besting GSK’s Fluarix in phase 3.
Moderna secures $750 mln from Blackstone Life Sciences to develop flu shots https://t.co/qJYzXH8hdo pic.twitter.com/aJioaMoKde
— Reuters (@Reuters) March 27, 2024
Blackstone Life Sciences, a private investment company, is making a big bet on its Cambridge neighbor Moderna, the drug firm that has made multiple versions of a vaccine to fend off COVID-19. https://t.co/8HVPkHTLW0
— The Boston Globe (@BostonGlobe) March 27, 2024
“Moderna is developing several new vaccines, including for cancer and respiratory syncytial virus (RSV), resulting in high research and development spending,” Reuters noted.
“It allows us to accelerate into new programs. It allows us to diversify our revenue stream and it reduces the risk, frankly, of the flu program as well,” Moderna Chief Financial Officer James Mock commented.
Per Reuters:
The company would consider this project financing model for other experimental vaccines, if there is a need, he added.
Moderna plans to move three vaccines to late-stage trials this year, including one against the varicella-zoster virus that can cause shingles and another against the pathogen that causes infectious mononucleosis, commonly known as mono.
Moderna shares were up about 2% in afternoon trading.
