Being Moderna is expensive
Moderna Therapeutics made history in late 2018, raising $600 million in the largest-ever biotech IPO. The former unicorn’s burn rate might be record-setting as well.
Looking at Moderna’s most recent financials, the company was on pace to spend more than $600 million in 2019. Moderna has since expanded its pipeline and promised to get some early-stage therapies into human trials, an endeavor likely to only increase the cost of doing business.
And so it was no surprise last night when the Cambridge, Mass., company launched a $500 million stock offering. Cash is likely running a little low, and Moderna’s share price is trading near an all-time high thanks in part to its work developing a vaccine for the novel coronavirus. Might as well raise money.
But Moderna’s wide pipeline is still years away from producing a product that actually generates revenue, and it’ll be instructive to see how investors react as the ambitious company returns to the well time and again for much-needed cash.
Looking at Moderna’s most recent financials, the company was on pace to spend more than $600 million in 2019. Moderna has since expanded its pipeline and promised to get some early-stage therapies into human trials, an endeavor likely to only increase the cost of doing business.
And so it was no surprise last night when the Cambridge, Mass., company launched a $500 million stock offering. Cash is likely running a little low, and Moderna’s share price is trading near an all-time high thanks in part to its work developing a vaccine for the novel coronavirus. Might as well raise money.
But Moderna’s wide pipeline is still years away from producing a product that actually generates revenue, and it’ll be instructive to see how investors react as the ambitious company returns to the well time and again for much-needed cash.
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