Moderna Secures $1.5B Five-Year Loan from Ares Management Ahead of Strategy Update

Moderna Inc. (NASDAQ:MRNA) is one of the high short interest stocks to buy right now. On November 20, Moderna announced that it had secured a five-year loan of $1.5 billion from Ares Management Corp (NYSE:ARES). The company made this announcement as it prepared to unveil strategy updates to analysts later that day. Moderna plans to draw $600 million upfront and retains optional access to an additional $400 million through November 2027 and $500 million through November 2028.

President of Moderna, Stephen Hoge, noted that the loan provides the company with flexibility to fund business development opportunities or manage risk. Moderna is targeting up to 10% revenue growth in 2026, following financial struggles since the collapse of COVID-19 vaccine demand. The company’s revenue fell from $18.4 billion in 2022 to a fraction of that, which forced deep cost cuts and pipeline reprioritization. Moderna now expects sales between $1.6 and $2 billion for 2025.

Moderna Secures $1.5B Five-Year Loan from Ares Management Ahead of Strategy Update

The projected 10% revenue growth for 2026 is contingent upon momentum from partnerships in the UK, Canada, and Australia, along with US demand for its next-generation COVID vaccine, mNEXSPIKE. Further revenue lifts are anticipated in 2027 as Pfizer’s EU COVID vaccine deal expires, opening national tenders in a $1.8 billion market where Moderna currently has minimal share. Additional growth is expected in 2028 from the anticipated rollouts of its COVID-flu combination shot and a norovirus vaccine, products which Moderna expects to be the first and potentially only player to offer in those categories.

Moderna Inc. (NASDAQ:MRNA) is a biotechnology company that provides messenger RNA medicines in the US, Europe, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.