Moderna, a trailblazer in vaccine development, announced on Wednesday that Blackstone’s life sciences sector will inject $750 million into the advancement of its influenza vaccines.
This significant funding comes at a pivotal moment for Moderna as the company navigates the aftermath of diminished COVID-19 vaccine sales, aiming to broaden its vaccine portfolio to include treatments for cancer, respiratory syncytial virus (RSV), and more.
Despite these ambitions leading to increased research and development (R&D) costs, Moderna plans to maintain its R&D budget at approximately $4.5 billion for the year.
“We’re excited about this because it checks all the boxes,” stated James Mock, Moderna’s Chief Financial Officer.
He highlighted the deal’s potential to fast-track new programs, diversify revenue, and mitigate the flu program’s risks during the 2024 vaccines day event.
Under the agreement, Blackstone Life Sciences is entitled to commercial milestone payments and a modest royalty percentage from the influenza vaccine sales.
Additionally, should a combination influenza and COVID vaccine receive approval, Blackstone will receive royalties proportional to the influenza component’s value.
Moderna is considering extending this financing strategy to other vaccine projects if necessary.
The company is gearing up to advance three vaccines into late-stage trials this year, targeting the varicella-zoster virus, responsible for shingles, and the pathogen behind infectious mononucleosis.
This development sparked a 2% increase in Moderna’s stock prices during afternoon trading.
After experiencing a steep decline in COVID-19 vaccine sales, plummeting from over $18 billion in 2022 to a forecasted $4 billion in 2024, Moderna is betting on the launch of its RSV vaccine in the United States and the approval of its flu vaccine for 2025 to revitalize its market presence.
The flu vaccine market, currently valued at about $7 billion, presents a growth opportunity for Moderna, especially with the potential $10 billion peak sales from the RSV vaccine.
Moderna’s flu vaccines have shown promising results, demonstrating a stronger immune response to all four influenza virus strains compared to conventional vaccines in a late-stage trial.
“Moderna Secures $750 Million from Blackstone for Flu Vaccine Development Amid Expanding Portfolio”