WEBVTT - Moderna CEO Talks Company Earnings

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<v Speaker 1>Maternal out already reporting a narrow with an expected first

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<v Speaker 1>quarter loss cost cutting of setting a steep decline in

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<v Speaker 1>its COVID business. Maternal expecting to receive US approval for

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<v Speaker 1>its second product, an RSV vaccine, in the coming days,

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<v Speaker 1>joining us now as the Maternal CEO. Stephan Bansal, Stephan,

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<v Speaker 1>wonderful to catch up with you, sir. The stock is

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<v Speaker 1>just about positive in the pre market. Can you talk

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<v Speaker 1>to me about how you're balancing cost cutting with investing

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<v Speaker 1>in innovation given what's in the pipeline.

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<v Speaker 2>Sure, well, good morning, Thank you for having me so

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<v Speaker 2>very pleased with a quote. We basically try to focus

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<v Speaker 2>on how do we drive sales, how do we drive

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<v Speaker 2>R and D, how do we prioritize opportunities, which is

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<v Speaker 2>the way. For example, we announced that we are stopping

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<v Speaker 2>the partnership with Metagenom in research engine editing.

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<v Speaker 3>Same thing if you look.

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<v Speaker 2>At the portfolio, we're looking very carefully at all investments.

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<v Speaker 2>And the good thing about those vaccines, like respiratory vaccines

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<v Speaker 2>is your only pay the face free study. Whats so

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<v Speaker 2>if you think about COVID, we still up sells from COVID,

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<v Speaker 2>but the investment in the idea of COVID has come

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<v Speaker 2>down a lot. As you said ours, we we are

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<v Speaker 2>anticipating a launch this spring, but we're not going to

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<v Speaker 2>do another Phase three four URSV, so you can still

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<v Speaker 2>basically have a lot of new studies going on. We're

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<v Speaker 2>using the capital you used to put in the other

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<v Speaker 2>products before. And then if you look at oncology, as

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<v Speaker 2>you know, we're in a fifty to fifty profit share

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<v Speaker 2>with Merk, so merk is paying half of a phase

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<v Speaker 2>free study. So that's how we're managing when we're seeing

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<v Speaker 2>a lot in technology. You might have seen last week

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<v Speaker 2>an announcement with open Ai. We actually more than seven

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<v Speaker 2>hundred fifty GPT is going and that is helping us

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<v Speaker 2>a lot scale the company across not only science but

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<v Speaker 2>surd having a lot of productivity in manufacturing in commercial

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<v Speaker 2>illegal So that's kind of how we're doing it.

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<v Speaker 1>So Stephan, let's talk about something that our colleagues here

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<v Speaker 1>at Bloomberger extremely focused on, and that's your RS three shot,

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<v Speaker 1>which according to our colleagues, some data is showing that

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<v Speaker 1>maybe it doesn't last as long as others in the market.

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<v Speaker 1>What we all want to know here at Bloomberger is

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<v Speaker 1>whether that raises questions about the promise of your technology

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<v Speaker 1>in treating other diseases. How would you answer that?

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<v Speaker 2>So will first say that if you look at the

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<v Speaker 2>data the duration of the over vaccines, they are very similar.

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<v Speaker 2>So I don't think it is scientifically correct to say

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<v Speaker 2>that one of a vaccine doesn't last as long as

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<v Speaker 2>your ones of a too that are improved and ours.

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<v Speaker 2>Look at the data. This will be debated at the

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<v Speaker 2>CDC meeting at the end of drewne that for reccommodations.

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<v Speaker 2>So this doesn't worry me. If you look at duration,

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<v Speaker 2>the duration of vaccination is induced by T cell. If

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<v Speaker 2>you look at cancer product, the only reason it works

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<v Speaker 2>is T cells, not antibodies. Antibodies don't have a row

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<v Speaker 2>in cancer. It's about T cells going and attacking your cancer.

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<v Speaker 2>If our vaccine technology didn't have good T cell response,

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<v Speaker 2>the cancer product will not look as good as it is.

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<v Speaker 2>So I'm not worried at all about duration.

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<v Speaker 4>Pretty much every time we speak, Stefan, I ask you, basically,

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<v Speaker 4>have we couraged cancer yet? So I'm glad that you

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<v Speaker 4>went there because that's been sort of one of the

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<v Speaker 4>big questions in the hope for a lot of the

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<v Speaker 4>MR and A vaccines. You have this Melanima vaccine in

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<v Speaker 4>the works, what more do you have to do to

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<v Speaker 4>get it sort of set up for the approval process

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<v Speaker 4>to apply for that and are you using artificial intelligence

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<v Speaker 4>to extradite.

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<v Speaker 3>That great question.

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<v Speaker 2>So if you look at cancer treatment in melanoma, we've

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<v Speaker 2>said that we need to achieve free things to be

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<v Speaker 2>able to talk to regulator about accelerated approval. So the

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<v Speaker 2>face to day ties data we shared on the show

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<v Speaker 2>several times, we see duration. If you remember in December

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<v Speaker 2>we shad a three year survival. It was better than

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<v Speaker 2>the two year survival. So the difference between people on

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<v Speaker 2>all treatment and people that are just getting cathedral is

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<v Speaker 2>getting wider. So there's a very strong evidence that the

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<v Speaker 2>drug is working.

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<v Speaker 3>So that's number one.

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<v Speaker 2>Number two is we need a phase free study to

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<v Speaker 2>be substantially enrolled, and so we are working very actively.

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<v Speaker 2>Face free study started two months earlier plan last summer

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<v Speaker 2>and so when we are substantially enrolled, we will meet

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<v Speaker 2>that criteria and it could be late this year. And

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<v Speaker 2>the third one is a plant because of course we

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<v Speaker 2>need to file in the restrection du all the information

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<v Speaker 2>about the manufacturing process BFD the day you file is

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<v Speaker 2>allowed to go, of course, audit your plant. That plant

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<v Speaker 2>is being built. I had a chance to go there

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<v Speaker 2>two weeks ago. The team is working NonStop, scheduling literally

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<v Speaker 2>by the days, a bit like we did during COVID

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<v Speaker 2>during the pandemic, and so I anticipate that potentially sometime

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<v Speaker 2>next year, you know, the if a regulator was willing

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<v Speaker 2>to look at the accelerated approval file, we should have

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<v Speaker 2>this product available to help a lot of people, because

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<v Speaker 2>one in two people benefit with no thises coming back

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<v Speaker 2>or our deaths compared to the best drug available today

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<v Speaker 2>to them on the market.

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<v Speaker 4>Stephan, can you just give us a sense of you

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<v Speaker 4>talk about artificial intelligence. Everyone's talking about artificial intelligence. Could

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<v Speaker 4>you just talk about how much that could expedite generally

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<v Speaker 4>some of the drug production that we're seeing. Just how

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<v Speaker 4>much that could really get us to achieve you know,

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<v Speaker 4>that cure for cancer, that cure for als, cure for Alzheimer's.

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<v Speaker 4>You know, it's funny you're talking about sex and city.

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<v Speaker 4>I sit around and I worry about these things. You know,

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<v Speaker 4>what are we to cure these things? So I'm just wondering,

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<v Speaker 4>you know, this is going to be in our lifetime

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<v Speaker 4>in the next couple of years because of some of

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<v Speaker 4>the machine learning.

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<v Speaker 2>Yes, so I think there's a few things to tear

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<v Speaker 2>part in your in your great question. First is I

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<v Speaker 2>think machine learning in academic labs, in research labs, in

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<v Speaker 2>industry is helping accelerate the understanding of a human body.

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<v Speaker 2>If you think about you know, this is Alzheimer and

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<v Speaker 2>all those complicated disease that we do not have solutions

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<v Speaker 2>for yet as a society. It's because we do not

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<v Speaker 2>understand the biology. We do not understand how the disease happened,

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<v Speaker 2>how the disease evolved, and so we are just trying

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<v Speaker 2>things and some work, but very few work. Most of

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<v Speaker 2>them don't work because we're just trying and guessing. If

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<v Speaker 2>you look at a biology, once we understand that something works,

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<v Speaker 2>then the industry can comes with very very good actions

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<v Speaker 2>to deal with those. So I think AI will accelerate

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<v Speaker 2>the understanding of biology, which would be fundamental to bring

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<v Speaker 2>new drug. Then AI is already used to accelerate discovery

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<v Speaker 2>in terms of what tool do you go after a

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<v Speaker 2>disease once you understand it. At modern already we have

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<v Speaker 2>different chemical matters that are generated by our AI system

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<v Speaker 2>that are helping us to accelerate the work that humans

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<v Speaker 2>are doing. So it's an accelerator to the teams. And

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<v Speaker 2>then there's a huge chapter on productivity. If you think

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<v Speaker 2>about clinical development phase one, two and three, it's basically

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<v Speaker 2>doing experiment in human, getting the data, finding the doors,

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<v Speaker 2>doing more experiment, and when you have all studied on,

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<v Speaker 2>you get all the data and you submit by relator.

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<v Speaker 3>My point is it's all about data.

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<v Speaker 2>They are literally hundreds of business processes that need to happen,

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<v Speaker 2>and I think many of those, if not most of those,

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<v Speaker 2>you've got to be able to apply AI to shrink

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<v Speaker 2>time to go faster. An example we shared in March

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<v Speaker 2>in a vaccine. Then the team wrote a GPT to

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<v Speaker 2>help us to do those selections. When you do clinical

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<v Speaker 2>study your phase one, you try several doses and then

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<v Speaker 2>based on the data you get in a clinic, you

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<v Speaker 2>decide which jos go into your phase three. Well, it

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<v Speaker 2>used to take around a month to do that by

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<v Speaker 2>having people and meeting and experts looking at the data

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<v Speaker 2>while we develop a GPT that basically get all the

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<v Speaker 2>data from the clinical study and suggests to us a

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<v Speaker 2>those in literally a minutes or two. That is already

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<v Speaker 2>a tool that has been developed that I've seen used

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<v Speaker 2>at the company.

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<v Speaker 3>That's just one example. So here you go to shrink

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<v Speaker 3>them off.

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<v Speaker 2>And if you do that on the hundreds of business

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<v Speaker 2>processes that have to happen in preparing the drug for

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<v Speaker 2>the clinic, the clinical testing, the analyzing of the data,

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<v Speaker 2>the communication with the FDA, I think you can save

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<v Speaker 2>a lot of time. I don't know yet, because only

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<v Speaker 2>history will show us in the next few years, can

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<v Speaker 2>you shave thirty percent, forty percent, fifty percent of how

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<v Speaker 2>many years it takes you to develop a drug?

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<v Speaker 3>I think it's going to be very significant.

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<v Speaker 1>Stephan, We've got to leave you there. It's fantastic to

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<v Speaker 1>catch up with you, so amazing to listen to you

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<v Speaker 1>talk about the efforts taking place at Maderna. Madenna CEO

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<v Speaker 1>Stefan Bansell