Mod­er­na boosts uni­corn sta­tus with a whop­ping $500M raise and $7B val­u­a­tion

Stéphane Ban­cel, Mod­er­na CEO

The biotech world’s biggest uni­corn just raised $500 mil­lion, bring­ing its to­tal haul to about $2.5 bil­lion from part­ner­ships and in­vestors while valu­ing the com­pa­ny at close to $7 bil­lion.

This year Mod­er­na will burn through about $450 mil­lion, the ex­ec­u­tive team tells me to­day. And with this new fi­nanc­ing, the com­pa­ny has three years of run­way — plen­ty of time to fig­ure out the right tim­ing for an even­tu­al IPO.

“We al­ways like to have sev­er­al years of cap­i­tal,” says CEO Stéphane Ban­cel. “And we want to keep on ex­pand­ing the in­vestor base.”

They ac­com­plished that goal in style.

Mod­er­na raised the cash from a broad, glob­al syn­di­cate that stretched from the Mid­dle East to Eu­rope and on to Chi­na. The group in­clud­ed the Abu Dhabi In­vest­ment Au­thor­i­ty, BB Biotech AG, Julius Baer, Sin­ga­pore-based ED­BI and Se­quoia Cap­i­tal Chi­na. Ex­ist­ing in­vestors that al­so par­tic­i­pat­ed in this round in­clude Fi­deli­ty Man­age­ment and Re­search, Pictet, Viking Glob­al In­vestors, Ar­row­Mark Part­ners and Alexan­dria Ven­ture In­vest­ments.

With the raise, the com­pa­ny has $1.4 bil­lion in cash in the bank, and an­oth­er $250 mil­lion com­ing from es­tab­lished grants. That trea­sure trove will be used to back a staff that has grown in­to the hun­dreds, with ded­i­cat­ed man­u­fac­tur­ing sup­port and a host of big part­ners work­ing with them on de­vel­op­ment pro­grams.

That leaves every­one ask­ing the same big ques­tion: When will Mod­er­na go pub­lic?

“We’re not pre­pared to go there,” re­spond­ed CFO Lorence Kim when I asked. “With this cap­i­tal we will now look at the ad­vance­ment of our pro­grams through and in the clin­ic” as they pon­der the right next step on fi­nanc­ing.

But it’s cer­tain­ly on the radar. Adds Kim: “We are be­gin­ning the process of prepar­ing and eval­u­at­ing the costs and in­fra­struc­ture of be­ing pub­lic.”

For a pri­vate biotech with deep-pock­et in­vestors back­ing it, Mod­er­na has stirred some pow­er­ful feel­ings — both pro and con — in the Cam­bridge/Boston biotech hub where it’s based.

Noubar Afeyan

Sup­port­ers look at a broad­en­ing pipeline that cur­rent­ly has 19 pro­grams in clin­i­cal de­vel­op­ment for a po­ten­tial­ly break­through ap­proach us­ing mes­sen­ger RNA, as of the most re­cent up­date at JP­Mor­gan. And Noubar Afeyan, the chief at Flag­ship, has made it a prime ex­am­ple of the kind of ma­jor league play­er he wants to bring up from the AAA.

For them, Mod­er­na is part of the new breed of biotechs.

Crit­ics have hit the com­pa­ny for a huge val­u­a­tion that’s ex­tra­or­di­nary for a biotech that has no mar­ket­ed prod­ucts and a pipeline that still has some ma­jor strides to go be­fore get­ting in­to late-stage de­vel­op­ment. For that crowd, the big mon­ey and pay­roll at Mod­er­na are a sign of pure froth in an over­heat­ed mar­ket.

For them, Mod­er­na is an aber­ra­tion that threat­ens to crum­ble.

Love them or hate them, though, Mod­er­na is play­ing for all the mar­bles, and this lat­est $500 mil­lion raise and multi­bil­lion-dol­lar val­u­a­tion speaks to their suc­cess in get­ting some well heeled back­ers to go very deep, and very long, in giv­ing them the funds to go all the way.

BiTE® Plat­form and the Evo­lu­tion To­ward Off-The-Shelf Im­muno-On­col­o­gy Ap­proach­es

Despite rapid advances in the field of immuno-oncology that have transformed the cancer treatment landscape, many cancer patients are still left behind.1,2 Not every person has access to innovative therapies designed specifically to treat his or her disease. Many currently available immuno-oncology-based approaches and chemotherapies have brought long-term benefits to some patients — but many patients still need other therapeutic options.3

President Donald Trump (left) and Moncef Slaoui, head of Operation Warp Speed (Alex Brandon, AP Images)

UP­DAT­ED: White House names fi­nal­ists for Op­er­a­tion Warp Speed — with 5 ex­pect­ed names and one no­table omis­sion

A month after word first broke of the Trump Administration’s plan to rapidly accelerate the development and production of a Covid-19 vaccine, the White House has selected the five vaccine candidates they consider most likely to succeed, The New York Times reported.

Most of the names in the plan, known as Operation Warp Speed, will come as little surprise to those who have watched the last four months of vaccine developments: Moderna, which was the first vaccine to reach humans and is now the furthest along of any US effort; J&J, which has not gone into trials but received around $500 million in funding from BARDA earlier this year; the joint AstraZeneca-Oxford venture which was granted $1.2 billion from BARDA two weeks ago; Pfizer, which has been working with the mRNA biotech BioNTech; and Merck, which just entered the race and expects to put their two vaccine candidates into humans later this year.

Is a pow­er­house Mer­ck team prepar­ing to leap past Roche — and leave Gilead and Bris­tol My­ers be­hind — in the race to TIG­IT dom­i­na­tion?

Roche caused quite a stir at ASCO with its first look at some positive — but not so impressive — data for their combination of Tecentriq with their anti-TIGIT drug tiragolumab. But some analysts believe that Merck is positioned to make a bid — soon — for the lead in the race to a second-wave combo immuno-oncology approach with its own ambitious early-stage program tied to a dominant Keytruda.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Leen Kawas, Athira CEO (Athira)

Can a small biotech suc­cess­ful­ly tack­le an Ever­est climb like Alzheimer’s? Athi­ra has $85M and some in­flu­en­tial back­ers ready to give it a shot

There haven’t been a lot of big venture rounds for biotech companies looking to run a Phase II study in Alzheimer’s.

The field has been a disaster over the past decade. Amyloid didn’t pan out as a target — going down in a litany of Phase III failures — and is now making its last stand at Biogen. Tau is a comer, but when you look around and all you see is destruction, the idea of backing a startup trying to find complex cocktails to swing the course of this devilishly complicated memory-wasting disease would daunt the pluckiest investors.

Pfiz­er’s Doug Gior­dano has $500M — and some ad­vice — to of­fer a cer­tain breed of 'break­through' biotech

So let’s say you’re running a cutting-edge, clinical-stage biotech, probably public, but not necessarily so, which could see some big advantages teaming up with some marquee researchers, picking up say $50 million to $75 million dollars in a non-threatening minority equity investment that could take you to the next level.

Doug Giordano might have some thoughts on how that could work out.

The SVP of business development at the pharma giant has helped forge a new fund called the Pfizer Breakthrough Growth Initiative. And he has $500 million of Pfizer’s money to put behind 7 to 10 — or so — biotech stocks that fit that general description.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 83,000+ biopharma pros reading Endpoints daily — and it's free.

GSK presents case to ex­pand use of its lu­pus drug in pa­tients with kid­ney dis­ease, but the field is evolv­ing. How long will the mo­nop­oly last?

In 2011, GlaxoSmithKline’s Benlysta became the first biologic to win approval for lupus patients. Nine years on, the British drugmaker has unveiled detailed positive results from a study testing the drug in lupus patients with associated kidney disease — a post-marketing requirement from the initial FDA approval.

Lupus is a drug developer’s nightmare. In the last six decades, there has been just one FDA approval (Benlysta), with the field resembling a graveyard in recent years with a string of failures including UCB and Biogen’s late-stage flop, as well as defeats in Xencor and Sanofi’s programs. One of the main reasons the success has eluded researchers is because lupus, akin to cancer, is not just one disease — it really is a disease of many diseases, noted Al Roy, executive director of Lupus Clinical Investigators Network, an initiative of New York-based Lupus Research Alliance that claims it is the world’s leading private funder of lupus research, in an interview.

Covid-19 roundup: Mod­er­na read­ies to en­ter PhI­II in Ju­ly, As­traZeneca not far be­hind; EU ready to ne­go­ti­ate vac­cine ac­cess with $2.7B fund

Moderna may soon add another first to the Covid-19 vaccine race.

In March, the mRNA biotech was the first company to put a Covid-19 vaccine into humans. Next month, they may become the first company to put their vaccine into the large, late-stage trials that are needed to prove whether the vaccine is effective.

In an interview with JAMA editor Howard Bauchner, NIAID chief Anthony Fauci said that a 30,000-person, Phase III trial for Moderna’s vaccine could start in July. The news comes a week after Moderna began a Phase II study that will enroll several hundred people.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 83,000+ biopharma pros reading Endpoints daily — and it's free.

José Basel­ga finds promise in new class of RNA-mod­i­fy­ing can­cer tar­gets, lock­ing in 3 pre­clin­i­cal pro­grams with $55M

Having dived early into some of the RNA breakthroughs of the last decades — betting on Moderna’s mRNA tech and teaming up with Silence on the siRNA front — AstraZeneca is jumping into a new arena: going after proteins that modify RNA.

Their partner of choice is Accent Therapeutics, which is receiving $55 million in upfront payment to steer a selected preclinical program through to the end of Phase I. After AstraZeneca takes over, the Lexington, MA-based startup has the option to co-develop and co-commercialize in the US — and collect up to $1.1 billion in milestones in the long run. The deal also covers two other potential drug candidates.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 83,000+ biopharma pros reading Endpoints daily — and it's free.

Joseph Kim, Inovio CEO (Andrew Harnik, AP Images)

Caught in a stand­off with its con­tract man­u­fac­tur­er over Covid-19 vac­cine, In­ovio files suit in an at­tempt to break free while ri­vals race ahead

Inovio was one of the first vaccine developers to snag attention for a jab that their execs said promised to end the Covid-19 pandemic. Using their own unique DNA tech, CEO Joseph Kim said it took just 3 hours to work it out.

But while rivals are racing to the finish line with ambitious plans to make vast quantities of their vaccines with billions of dollars of deals, Inovio is still stuck at the starting line on manufacturing.