Moderna’s CFO on What a Biotech Comany Does With $13 Billion

The pharmaceutical space is characterized by extreme uncertainty. You never know what drugs are going to pan out. The lead time for development is extremely long. Market size is inherently unknowable. And the regulatory and pricing climate is always changing. So how does a company decide where to invest its cash? On this episode, we speak with Moderna's chief financial officer, Jamey Mock, about how he views the problem. He explains the process by which the vaccine maker chooses which bets to make, how changing fortunes within the stock market affect corporate decision making, and the role of the government in accelerating progress and de-risking investment. This transcript has been lightly edited for clarity.

Key insights from the pod:
What does Moderna do? — 2:44
What does the CFO of Moderna do? —04:48
Timelines for drug research and development — 6:39
How do you allocate capital? — 08:35
The process for allocating capital — 11:22
Internal lobbying for capital — 14:54
Moderna's funding source — 18:23
Operation Warp Speed — 21:14
What do CFOs think of share price? — 24:31
Avoiding the hype cycle in drugs — 31:26
The importance of distribution — 36:46
Similarities between aviation and pharma — 39:58
Impact of higher rates — 43:00