Moderna to Raise $2 Billion for Cancer Vaccine Development

Moderna Inc. announced plans Thursday to raise $2 billion through the sale of convertible senior notes due 2032, with an option to sell an additional $300 million. The company intends to use the proceeds to fund its cancer vaccine business and repay existing debt.

The offering follows a record 177% surge in the company's stock price on August 19. This spike was triggered by positive late-stage trial results for a personalized mRNA cancer vaccine developed in partnership with Merck & Co. By timing the sale after the stock increase, Moderna aims to set a higher conversion price to minimize future shareholder dilution.

The strategic shift into oncology comes as Moderna seeks to diversify its portfolio following a decline in Covid-19 vaccine sales. The company has also faced recent setbacks with its norovirus and respiratory syncytial virus vaccine candidates.