NEW YORK - In a significant move within the pharmaceutical industry, Blackstone (NYSE:BX) Life Sciences, part of Blackstone (NYSE:BX), has entered into a funding agreement with biotechnology company Moderna , Inc. (NASDAQ:MRNA). The deal, announced today, will see Blackstone provide up to $750 million to support the development and commercialization of Moderna's influenza vaccine program.
This collaboration underscores Blackstone's strategy of partnering with leading life sciences companies to accelerate the development of vaccines and medical technologies. Nicholas Galakatos, Ph.D., Global Head of Blackstone Life Sciences, highlighted Moderna's track record in creating mRNA vaccines for respiratory illnesses and expressed enthusiasm for advancing these vaccines to patients.
Moderna's CEO, Stéphane Bancel, emphasized the company's rapid advancement of a diverse pipeline and its ambition to launch multiple vaccine products in the coming years. He noted that achieving this goal requires significant investment, particularly in late-stage studies, and welcomed Blackstone's innovative financing model.
Under the terms of the agreement, Blackstone will fund Moderna's flu program, potentially earning milestones and royalties on successful flu products. Moderna will account for the funding as a reduction in research and development expenses while maintaining full rights and control over the influenza program.
The investment in Moderna's flu program continues Blackstone Life Sciences' commitment to supporting scientific innovation. With over $8 billion in assets under management, Blackstone Life Sciences invests across various life science sectors, providing financing solutions to advance medical products for patient care.
The financial terms beyond the $750 million investment were not disclosed. This announcement coincides with Moderna's Vaccines Day press release, which provides additional information on the company's flu program pipeline.
This news is based on a press release statement from Blackstone.
InvestingPro Insights
As Blackstone (NYSE:BX) ventures into a strategic partnership with Moderna for the development of influenza vaccines, investors are keenly observing Blackstone's financial metrics and market performance. According to InvestingPro data, Blackstone currently boasts a formidable market capitalization of $150.03 billion. Despite experiencing a slight revenue decline of 4.14% in the last twelve months as of Q4 2023, the company has maintained a high gross profit margin of 93.13%, underscoring its ability to efficiently manage its cost of goods sold and maintain profitability.
Investors should note that Blackstone trades at a high earnings multiple, with a P/E ratio of 70.05, indicating a premium market valuation, which may reflect the market's expectations for future growth. Additionally, the company has a strong track record of returning value to shareholders, having maintained dividend payments for 18 consecutive years, with a dividend yield of 2.94% as of the latest data.
Two key InvestingPro Tips for Blackstone include the anticipation of net income growth this year and a noteworthy high return over the last year, with a one-year price total return of 57.06%. These insights suggest that Blackstone's strategic investments, such as the funding agreement with Moderna, may continue to support its financial growth and market performance.
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