Odd Lots Moderna's CFO on How to Allocate Capital in Big Pharma
4 snips
Mar 11, 2024 
Jamey Mock, Chief Financial Officer of Moderna, shares his insights on capital allocation in the unpredictable world of pharmaceuticals. He discusses how the lengthy drug development process complicates investment decisions. The impact of government funding during the pandemic on corporate strategy is explored, as is the importance of balancing long-term innovation with immediate market demands. Jamey also touches on the financial dynamics following Moderna's successful COVID vaccine, highlighting their considerable cash reserves and future investment plans.
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Managing Risk in Drug Development
- Assess the risks and capabilities of each drug candidate throughout the development process.
- Start with small patient groups in phase one trials and gradually expand in later phases.
Capital Allocation Strategy
- Moderna considers risk, market opportunity, competition, and timing when allocating capital.
- They prioritize investments in areas with higher conviction, like respiratory vaccines, due to proven mRNA capabilities.
Granular Allocation Decisions
- Moderna uses a multi-stage capital allocation process, starting with a high-level envelope for R&D.
- Specific allocation decisions are made by dedicated teams, considering factors like patient population and disease indication.