Biotech Sector: Preparing for Future Pandemics

Lessons Learned from Past Pandemics

Pandemics occur roughly every 15-20 years, highlighting the need for preparedness. mRNA platforms have proven to be rapid and effective tools in pandemic response. However, the politicization of vaccination efforts underscores the importance of clear public health communication and maintaining trust in scientific data.

"So help us understand where this stands. Yes. Well, if you look at the history of pandemics as we understand them, one every 15, 20 years does seem to happen." --- (MRNA, conference, 2024/06/10)

"can respond to pandemics and can provide a uniquely fast tool. We have confirmed that those conversations are ongoing." --- (MRNA, conference, 2024/06/10)

"I think we've all seen how mRNA platforms can respond to pandemics and can provide a uniquely fast tool." --- (MRNA, conference, 2024/06/10)

"of this, which is perception or experience that having gone through the pandemic and maybe to some extent that politicization vaccination that happened there that was not related to the science of mRNA and not even related to the amount of data we have, but really related to the number of years." --- (MRNA, conference, 2024/06/10)

Current R&D Efforts in Pandemic Preparedness

Moderna, Pfizer, and Novavax are actively advancing R&D efforts in pandemic preparedness, focusing on mRNA-based vaccines, biopharmaceutical technologies, and immunogenicity for pandemic strains. Regeneron emphasizes its robust internal R&D portfolio, while Moderna also acknowledges the challenges in prioritizing programs.

""We are pleased to continue our collaboration with BARDA to expedite our development efforts for mRNA-based pandemic influenza vaccines and support the global public health community in preparedness against potential outbreaks."In 2023, Moderna initiated a Phase 1/2 study to generate safety and immunogenicity data of investigational pandemic influenza vaccine (mRNA-1018) in healthy adults 18 years of age and older." --- (MRNA, press release, 2024/07/02)

"I look forward to continuing to work with the Japanese government to improve pandemic preparedness, to advance critical biopharmaceutical technologies, and to shape pro-innovation proposals that enhance the country’s biopharmaceutical sector. (Photo credit: Ian Wagreich at the U.S. Chamber of Commerce, @USChamber)" --- (PFE, Twitter, 2024/04/10)

"We continue to believe this asset may also be attractive from a pandemic preparedness perspective and that similar performance in terms of comparative immunogenicity may be expected for A/H5N1 pandemic strains." --- (NVAX, sec filing, 2024/Q1)

"We're always looking at opportunities that are out there. We don't feel compelled to do any sort of a transaction just based on, as you heard from Ryan, the breadth and depth of what we have in our own internal R and D portfolio." --- (REGN, conference, 2024/06/11)

"And that's one of the most difficult parts of my job often as the Head of R and D is working with a team to say, we can't quite prioritize that program now and we hope to get it in the future." --- (MRNA, conference, 2024/06/10)

Partnerships and Collaborations for Pandemic Response

Biotech companies are leveraging partnerships to enhance pandemic response. Moderna's Rapid Response Partnership Vehicle accelerates mRNA vaccine development, while its collaboration with Merck launches multiple studies. Johnson & Johnson maximizes opportunities through separate but partnered organizations and numerous smaller licensing deals. Pfizer's CEO emphasizes collaboration to advance impactful vaccines and therapies.

"We announced today a project award through the Rapid Response Partnership Vehicle (RRPV) to accelerate the development of mRNA-based pandemic #influenza #vaccines." --- (MRNA, Twitter, 2024/07/02)

"And so for that reason, we believe that running the organizations separately but in partnership are the best is the best possible way of ensuring that we can maximize the opportunity for J and J." --- (JNJ, M&A Announcement, 2024/04/05)

"I look forward to collaborating with him as an important thought partner as we work to advance the most impactful vaccines and therapies. https://t.co/vdADzbxK7m" --- (PFE, Twitter, 2024/05/06)

"We're very excited about the potential for patients. And in partnership with Merck, we've launched a multitude of studies to impact" --- (MRNA, Status Update, 2024/06/03)

"We are agnostic to sector and agnostic to size. In addition to the larger acquisitions that I mentioned in response to a prior question, we enter into more than 50 smaller licensing partnerships or deals in 2023." --- (JNJ, event transcript, 2024/04/25)

Funding and Investments in Pandemic Preparedness

Funding for pandemic preparedness in the biotech sector is bolstered by significant investments from organizations like CEPI, which provides forgivable loans, and federal agencies such as HHS, ASPR, and BARDA, which support projects through substantial financial backing.

"Our funding agreements currently include funding from the Coalition for Epidemic Preparedness Innovations ("CEPI") in the form of one or more forgivable no interest term loans ("CEPI Forgivable Loan Funding")." --- (NVAX, sec filing, 2024/Q1)

"project is being funded with federal funds from the Department of Health and Human Services (HHS); Administration for Strategic Preparedness and Response (ASPR); Biomedical Advanced Research and Development Authority (BARDA), under Other Transaction (OT) number: 75A50123D00005.About ModernaModerna is a leader in the creation of the field of mRNA medicine." --- (MRNA, press release, 2024/07/02)

Implementation and Operational Strategies

Operational strategies in the biotech sector for future pandemics focus on leveraging innovations and commercial execution (JNJ), enhancing efficiency through technology and AI (PFE), and minimizing bottlenecks to improve decision-making (MRNA). Significant R&D investments and strategic prioritization in pipeline advancement, revenue diversification, and risk reduction are also crucial (JNJ, MRNA).

"The Surgical operational growth was primarily driven by the continued strength of recent innovations and commercial execution partially offset by preparation for volume-based procurement implementation in China and refractive softness in the U.S." --- (JNJ, sec filing, 2024/Q1)

"This enables any function to extract critical insights from contracts whenever needed, minimizing bottlenecks, and freeing up Moderna's legal department to focus on work of higher strategic value, thus enhancing operational efficiency and decision-making." --- (MRNA, earning call, 2024/Q1)

"One way we will be more efficient, effective and able to execute on the 5 strategic priorities that I just mentioned is through technology, especially artificial intelligence." --- (PFE, event transcript, 2024/04/25)

"We continued our commitment to driving future innovation by investing more than $15,000,000,000 in R and D during 2023. At our Enterprise business review in December, we provided guidance of our expected 5% to 7% cumulative average growth rate in operational sales in the second half of the decade." --- (JNJ, event transcript, 2024/04/25)

"As we look to create value through our research and development strategy for our mRNA portfolio, we are taking three prioritization parameters into consideration: pipeline advancement, revenue diversification and risk reduction." --- (MRNA, sec filing, 2024/Q1)