Moderna secures $750 million from Blackstone Life Sciences to develop flu shots

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[March 27, 2024]  (Reuters) -Moderna said on Wednesday it has entered into an agreement with private equity firm Blackstone's life science investment platform for a funding of $750 million to develop its mRNA flu vaccines.

The biotech firm has been developing multiple vaccines to make up for a decline in sales of its COVID shots, sold under brand name Spikevax, and plans to spend about $4.5 billion in 2024 towards research and development.

Developing multiple vaccines "requires substantial investment in late-stage studies and we are excited to welcome Blackstone and their innovative financing model," CEO Stéphane Bancel said in a statement.

Blackstone Life Sciences will get commercial milestone payments and low-single digit royalties as part of the agreement, the COVID-19 vaccine maker said.

Shares of Moderna rose over 2% in premarket trading.

Moderna's flu shots have 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 trial, according to data released in September.

The company estimates flu vaccines to represent an about $7 billion market this year, and expects its scope to widen as new shots become available. Moderna plans to file its application with regulators this year.

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People pose with syringe with needle in front of displayed Moderna logo in this illustration taken, December 11, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Besides the flu shots, Moderna is also developing a vaccine to prevent infections from respiratory syncytial virus (RSV), a combination shot against flu and COVID-19, a second generation COVID vaccine, and a cancer vaccine co-developed with Merck.

Its RSV vaccine is expected to be launched this year in the United States.

(Reporting by Leroy Leo and Sneha S.K. in Bengaluru; Editing by Shinjini Ganguli)

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