NEW YORK – Blackstone (NYSE:) Life Sciences, a unit of Blackstone (NYSE:BX), has signed a financing agreement with biotech company Moderna, Inc. (NASDAQ:MRNA), a major move for the pharmaceutical industry. The agreement announced today will allow Blackstone to contribute 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. Dr. Nicholas Galakatos, global head of life sciences at Blackstone, highlighted Moderna’s track record in developing mRNA vaccines for respiratory diseases and expressed his excitement about bringing these vaccines to patients.
Moderna CEO Stéphane Bancel highlighted the company’s rapid progress in diversifying its product portfolio and its ambition to launch multiple vaccines in the coming years. He pointed out that achieving this goal will require significant investment, especially in late-stage research, and welcomed Blackstone’s innovative financing model.
Under the terms of the agreement, Blackstone will fund Moderna’s influenza program and has the potential to earn milestones and royalties on successful influenza products. Moderna will view the funding as a reduction in research and development expenses while retaining full rights and control of the influenza program.
The investment in Moderna’s influenza program continues Blackstone Life Sciences’ commitment to supporting scientific innovation. With more than $8 billion in assets under management, Blackstone Life Sciences invests across all areas of the life sciences, providing financing solutions to improve medical products used in patient care.
Financial terms beyond the $750 million investment were not disclosed. The announcement coincides with Moderna’s Vaccine Day press release, which provides additional information about the company’s portfolio of influenza programs.
This news is based on Blackstone’s press release.
Investment professional reviews
As Blackstone (NYSE:BX) enters a strategic partnership with Moderna to develop a flu vaccine, investors are paying close attention to Blackstone’s financial metrics and its market performance. According to InvestingPro, Blackstone’s current market value is as high as $150.03 billion. Despite a slight revenue decline of 4.14% in the trailing 12 months to Q4 2023, the company maintained a high gross margin of 93.13%, underscoring its ability to effectively manage cost of sales and maintain profitability.
Investors should note that Blackstone currently trades on a high P/E ratio of 70.05, indicating a premium to the market valuation, which may reflect market expectations for future growth. Additionally, the company has a strong track record of returning value to shareholders, having maintained its dividend for 18 consecutive years, with a dividend yield of 2.94%, according to the most recent data.
Two of InvestingPro’s key tips for Blackstone include expected net profit growth this year and significantly high profitability last year, with a one-year total price return of 57.06%. These cues suggest that Blackstone’s strategic investments, such as its financing agreement with Moderna, can continue to support its financial growth and market performance.
For those looking to gain a deeper understanding of Blackstone’s financial and market prospects, InvestingPro provides additional tips and indicators. Blackstone has 8 other InvestingPro tips, which can be accessed by visiting https://www.investing.com/pro/BX.To improve your investing strategy with these tips, use the coupon code PRONEWS24 Get an additional 10% off with annual or semi-annual subscriptions to Pro and Pro+.
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