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Moderna, Inc. 8-K Report, Material Agreement (Jul 27, 2020)

Reports
Material Agreements·Regulation FD·Exhibits & Filings
Filing Date
Filed July 27, 2020
Period End
July 25, 2020
Security
MRNA
In the record · 2018–202610-K910-Q238-K117

MRNA filed 9 annual reports (10-K), 23 quarterly reports (10-Q) and 117 current reports (8-K) between 2018 and 2026.

  1. Material agreement8-K · May ’19May ’19
  2. Leadership change8-K · Sep ’22Sep ’22
  3. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed July 27, 2020. Cited figures are marked; the original filing is the authoritative source.

Moderna, Inc. announced a significant amendment to its contract with the Biomedical Advanced Research and Development Authority (BARDA) on July 27, 2020.

This amendment substantially increases the funding from BARDA, raising the maximum award from approximately $483 milliona to roughly $955 million. The additional capital is earmarked for advancing Moderna's mRNA vaccine candidate, mRNA-1273, against COVID-19 through to potential licensure, including crucial clinical studies and manufacturing for those studies. This expanded partnership with BARDA underscores the U.S. government's commitment to accelerating the development of Moderna's vaccine candidate.

The increased funding and extended performance period to August 31, 2023, signal confidence in the program's progress. Investors should note that while this represents substantial backing, government contracts typically include clauses allowing for termination for convenience, a standard provision in such agreements.

02—Key points

Key Highlights

  1. Moderna amended its BARDA Contract, significantly increasing funding from ~$ 483 million to ~$ 955 million.
  2. The increased funding is specifically designated to advance the mRNA-1273 COVID-19 vaccine candidate towards potential licensure.
  3. The contract amendment covers funding for clinical studies and manufacturing for those studies.
  4. The period of performance for the BARDA Contract has been extended to August 31, 2023.
  5. The amendment highlights continued significant government support for Moderna's vaccine development efforts.
  6. A standard government clause allows BARDA to terminate the contract at its convenience.

03—Questions

Frequently Asked Questions

  1. What is the primary purpose of the amendment to the BARDA Contract?

    The primary purpose of the amendment is to substantially increase the funding available to Moderna for the continued development and advancement of its mRNA vaccine candidate (mRNA-1273) against COVID-19, including funding for clinical studies and manufacturing related to those studies, through to potential licensure.

  2. How does the increased funding impact Moderna's financial position?

    The amendment nearly doubles the maximum award from BARDA, providing significant financial resources to support the costly stages of vaccine development, such as large-scale clinical trials and manufacturing. This additional non-dilutive funding strengthens Moderna's ability to execute its vaccine program.

  3. Are there any significant risks associated with this BARDA contract amendment?

    While the increased funding is positive, government contracts typically include a 'termination for convenience' clause, allowing the government to terminate the contract at any time. This is a standard provision and not necessarily indicative of issues with the program, but it represents a potential, albeit unlikely, risk.

  4. What is the timeline for the BARDA-funded work under the amended contract?

    The amendment extends the current period of performance under the BARDA Contract to August 31, 2023, providing ample time for the completion of clinical studies and manufacturing activities necessary for potential licensure.

04—Continue

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