Pfizer and Moderna’s parent company are investing $100 million in a partnership to discover the next major drug.
Pfizer and Moderna's parent company are investing $100 million in a partnership to discover the next major drug.
Pfizer and Flagship Pioneering Form “Novel Agreement” to Drive Medical Innovation
Last week, pharmaceutical giants Pfizer and Flagship Pioneering, the parent company of Moderna, made headlines with their announcement of a “novel agreement” to create a pipeline of innovative medicines. This partnership, valued at $100 million, caught the attention of many due to the impressive track record both companies demonstrated during the pandemic in developing vaccines in record time.
To gain a deeper understanding of what makes this agreement truly groundbreaking, I had the opportunity to speak with Pfizer CEO Albert Bourla and Flagship CEO Noubar Afeyan. They highlighted the innovative nature of this collaboration and shed light on their shared vision for accelerating medical innovation.
What sets this agreement apart, according to Afeyan, is the combination of Flagship’s expertise in scientific leaps and creating platforms for new products, and Pfizer’s strong capability in taking products and applying them to meet unmet needs. Historically, these two aspects have often operated separately, with partnerships only forming after a product has proven successful in clinical trials. However, this alliance aims to foster a long-term view, allowing for collaboration and coexistence from the early stages of research and development. Instead of a one-off partnership, they envision a sustained alliance that can yield up to 10 innovative products.
Bourla emphasizes the changing landscape of the research environment, comparing it to 10 or 15 years ago when the number of biological targets and modalities to address them were limited. In today’s world, there is an abundance of knowledge and potential treatment approaches for every unmet medical need. Bourla praises Flagship’s unique position, with its umbrella of 40 different companies focused on various technologies, such as Moderna’s mRNA platform. By combining their collective expertise and resources, both companies hope to develop solutions that meet pressing medical needs.
The roots of this partnership can be traced back to the height of the pandemic when Pfizer and Flagship were both competitors and partners in the race to create a COVID-19 vaccine. The success and camaraderie they experienced during that time laid the foundation for their current collaboration. Bourla and Afeyan see this partnership as a new model for drug development, one that has the potential to reshape the industry and expedite the process of bringing life-saving treatments to market.
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While both CEOs acknowledge the challenges of embarking on such a unique endeavor, they express a shared willingness to learn and the patience required to align their organizations. Afeyan describes it as a voyage filled with exciting possibilities and substantial impact. Their hope is that their joint commitment and resources will enable them to iterate and refine their approach until they find the right formula. This venture represents a fundamental departure from the traditional model in life sciences, opening doors to new possibilities and potential breakthroughs.
The significance of this agreement is amplified by the reputation and track record of both Pfizer and Flagship Pioneering. These are two industry leaders known for their commitment to innovation and making a tangible impact on global health. As a result, this partnership is undoubtedly one to watch as it unfolds and potentially paves the way for future collaborations.
In other news, Jeremy Kahn’s insightful Fortune story delves into the $160 billion threat generative A.I. poses to Google and explores how the tech giant is responding. This business dilemma on a grand scale highlights the increasing influence of emerging technologies and the need for organizations to adapt and evolve to stay ahead in this rapidly changing landscape.
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Around the Watercooler
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This edition of CEO Daily was curated by Nicholas Gordon.
(Article by Alan Murray, originally published on Fortune)
