Blackstone Life Sciences, the life sciences arm of Blackstone, has announced a major funding deal with Moderna. The company will provide $750 million to support Moderna’s flu vaccine development. This investment comes at a crucial time for Moderna, as it faces declining sales of its COVID-19 vaccines.
Moderna is not only focused on flu vaccine development but is also working on vaccines for cancer and respiratory syncytial virus (RSV). These ambitious projects require significant research and development expenditures. With the new funding from Blackstone, Moderna plans to reduce its R&D expenses, but still expects to spend around $4.5 billion in the coming year.
The Chief Financial Officer of Moderna, James Mock, expressed his enthusiasm for the partnership with Blackstone, stating, “We are excited about this because it checks all the boxes.” He explained that the funding not only allows the company to expand into new programs but also diversifies its revenue stream and reduces the risk associated with the flu program.
Under the agreement, Blackstone Life Sciences will receive commercial milestone payments and low-single-digit royalties on the influenza vaccine. Currently, Moderna only markets its COVID-19 vaccines. However, if Moderna’s combined influenza and COVID vaccine is approved, Blackstone will receive a proportionate royalty based on the fair market value for the influenza component.
This funding model could serve as a blueprint for future experimental vaccines. If there is a need for further research and development in this area, Moderna will consider this type of project financing.
In terms of Moderna’s research plans, three vaccines are scheduled for late-stage trials this year. These include a vaccine for varicella-zoster, which can cause shingles, and a vaccine for infectious mononucleosis, commonly known as mono. Moderna is committed to advancing these projects and bringing new solutions to patients.
The news of the funding deal has had a positive impact on Moderna’s stock. Shares of the company were up approximately 2% in afternoon trading, reflecting investor confidence in the partnership and the future prospects of Moderna’s vaccine development.
The decline in COVID-19 shot sales has been a significant challenge for Moderna. Sales reached a peak of over $18 billion in 2022 but have since plummeted as pandemic concerns fade. Despite this decline, Moderna’s R&D expenses remain high. It is projected that COVID shot sales in 2024 will be around $4 billion, representing a reduction of $4.7 billion from the company’s net loss of $4.7 billion in 2023.
In related news, new research has revealed that breast cancer cells can evade treatment. This discovery highlights the ongoing need for innovative solutions in the field of cancer research.
Overall, the partnership between Moderna and Blackstone Life Sciences represents a significant step forward in vaccine development. With the infusion of $750 million, Moderna can continue its important work in flu vaccine development while also exploring new opportunities in cancer and RSV vaccines. The funding deal not only provides financial support but also reduces risks and diversifies Moderna’s revenue stream. With the potential for milestone payments and royalties, Blackstone stands to benefit from Moderna’s success. This collaboration could serve as a model for future project financing in the field of experimental vaccines.