Moderna will receive $750 million from Blackstone Life Sciences to develop flu shots
Moderna said Wednesday it has entered into an agreement with private equity firm Blackstone’s life science investment platform for $750 million in financing to develop its mRNA flu vaccines.
The biotech company has developed multiple vaccines to offset the decline in sales of its COVID shots, sold under the brand name Spikevax, and plans to spend about $4.5 billion on research and development by 2024.
Developing multiple vaccines “requires substantial investments in late-stage studies and we are excited to welcome Blackstone and their innovative financing model,” CEO StÃphane Bancel said in a statement.
Blackstone Life Sciences will receive commercial milestone payments and low-single-digit royalties as part of the deal, the COVID-19 vaccine maker said.
Shares of Moderna rose more than 2% in premarket trading.
Moderna’s flu shots generated a stronger immune response against all four A and B strains of the influenza virus compared to traditional flu shots in a late-stage study, according to data released in September.
The company estimates that flu vaccines will represent a market of approximately $7 billion this year, and expects its scope to expand as new vaccines become available. Moderna plans to submit the application to regulators this year.
In addition to the flu shots, Moderna is also developing a vaccine to prevent infections by the respiratory syncytial virus (RSV), a combination shot against flu and COVID-19, a second-generation COVID vaccine and a cancer vaccine developed together with Merck.
The RSV vaccine is expected to be launched in the United States this year.
First print: March 27, 2024 | 4:50 PM IST