Health
Blackstone Life Sciences Gives Moderna $750 Million To Develop Flu Shots
(CTN News) – Earlier this week, Moderna announced that Blackstone’s life sciences arm would contribute $750 million to its flu vaccine development, supporting the company’s efforts to advance multiple vaccines in the face of declining sales of its COVID-19 injections.
Moderna is developing new vaccines for cancer and respiratory syncytial virus (RSV). These vaccines are leading to high research and development expenditures.
With the funding, Moderna plans to reduce its R&D expenditures, although it still plans to spend about $4.5 billion in the coming year.
At the company’s 2024 vaccines day event, Chief Financial Officer James Mock stated, “We are excited about this because it checks all the boxes.” In addition to enabling us to expand into new programs, it allows us to diversify our revenue stream and it 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, according to Moderna, which currently markets only COVID-19.
Blackstone will also receive a proportionate royalty on Moderna’s combined influenza and COVID vaccine if it is approved, based on the fair market value for the influenza component.
In the future, if there is a need for further experimental vaccines, the company will consider this model of project financing.
As part of modern research plans, three vaccines are scheduled for late-stage trials this year, including one for varicella-zoster, which can cause shingles, and one for infectious mononucleosis, commonly known as mono.
The shares of Moderna were up about 2% in afternoon trading.
Moderna’s COVID shot sales have plummeted since their peak of over $18 billion in 2022 as pandemic concerns fade, despite high R&D expenses. COVID shot sales in 2024 are forecast to be $4 billion, which represents a reduction of $4.7 billion from the company’s net loss of $4.7 billion in 2023.
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