Introduction
Major research investments and technological innovations have made mRNA a highly successful therapeutic tool for rapid protein replacement therapy and vaccine development. This managerial report explores Moderna Inc., an American biotechnology company, which utilized the mRNA platform to develop the first COVID-19 within a remarkably short timeframe.
The paper will specifically outline the distinct organizational aspects, which enabled the company to move speedily in designing and the eventual successful trials of the vaccine. Additionally, it will describe the firm’s business model and illustrate how it contrasts with traditional pharmaceutical and biotechnology organizations. The report also discusses whether Moderna Inc. should consider creating a separate, standalone COVID-19 entity and the benefits which could accrue from that decision. Finally, the paper will evaluate the most significant priorities for the company in the future following the breakthrough of its mRNA vaccines.
Moderna Inc.’s Speedy Development of Covid−19 Vaccine
Since its inception, Moderna Inc. was committed to spearheading radical innovations in medicine by creating a transformative brand of transformative medical interventions founded on the scalable and widely applicable mRNA platform. The company, which initially operated as Flagship Ventures, combined scientific inventions and entrepreneurship to pursue novel ideas in human medicine. It designed its operations and strategies around this unique vision of thinking about future scenarios first and then formulating solutions retrogressively instead of incremental innovations, which dominate the big pharmaceutical establishments.
For instance, despite the absence of an expressed necessity for mRNA as a therapeutic, Flagship Ventures believed in its potential and viewed it as a revolutionary medicinal modality (Iansiti et al., 2021). Notably, this setup attracted a different category of investors who embraced the bold adventures of venturing further into the risky and less explored options. As a result, Moderna Inc. was in a favorable position to rapidly develop the Covid−19 vaccine compared to the traditional biotechnology firms.
Moreover, the success of the unique operation model was anchored on the firm’s complete digitization and automation, which accelerated research and optimized processes. Moderna Inc. leveraged data and technology to upscale its operations and improve the pace of information generation and its subsequent utilization in designing better algorithms. According to Pardi et al. (2018), the extensive exploration and success of the opportunities presented by nucleic acid therapeutics depend significantly on the availability of advanced technological infrastructure. Further, the digital integration adopted by the firm guaranteed quality and accelerated the processes by minimizing the possibility of errors (Iansiti et al., 2021). Therefore, digitizing operations and leveraging data and technology allowed Moderna Inc. to develop the COVID-19 vaccine rapidly.
Additionally, Moderna Inc.’s mRNA platform-based infrastructure allows the speedy development of vaccines by drastically reducing the associated timelines. Rosa et al. (2021) contend that mRNA technologies are characterized by significant flexibility and scalability, which support rapid vaccine development and manufacturing. Moreover, the utilization of a platform modality guaranteed applicability across a wide array of diseases (Zhang et al., 2019; Schlake et al., 2019).
In this regard, operating as a platform organization implied that a proven technology could develop numerous medicines in parallel since the insights obtained from one activity could be channeled into others. For instance, Moderna Inc. had already obtained crucial knowledge from their previous vaccine development activities, enabling them to avoid the initial preclinic phases, thereby saving time. This approach facilitated the swift vaccine development and contrasted the strategies adopted by the typical biopharma organizations, which had to conduct their operations sequentially from research efforts to clinical trials.
Moderna Inc. has had impressive growth over the years, which can be attributed to its novel approach to developing transformative medicines anchored on mRNA. By early 2020, the company was already engaged in 23 vaccine development projects spread across various core and exploratory modalities. For instance, Moderna Inc. had nine and two prophylactic and cancer vaccines under the prophylactic category, respectively (Iansiti et al., 2021). Such other ventures as therapeutics against autoimmune disorders and heart failure also reflect the firm’s impact in extending the existing knowledge on medicines and expanding the boundaries of human science.
Further, Moderna Inc. leverages its artificial intelligence (AI) factory to revolutionize the field of human medicine. Notably, the biotech firm designed its entire processes and operations around a digital framework. Consequently, the firm reached significant milestones within remarkably short timescales due to the programmability of mRNA and the digital infrastructure that the company established. For instance, data integration and harmonization across the systems generate structured information in such areas as research, preclinical production, and experiments, which enhances the building of better algorithms for the next generation of medicines (Iansiti et al., 2021).
Moderna Inc. purposefully designed this infrastructure to realize greater accuracy, accelerate the delivery of algorithms, improve the quality of decisions, and fast-track multiple phases and aspects of vaccine research and development. Additionally, Moderna Inc. uses AI for decision-making in such diverse areas as predictions in clinical trial space and nucleotide sequencing, which provide highly accurate results, effectively mitigating risks by minimizing the possibility of errors. Therefore, the adoption of AI as the foundation of all processes, activities, and decision-making offered Moderna Inc. a competitive advantage over conventional biotech organizations.
Moderna Inc.’s Business Model
Moderna Inc.’s business model differs significantly from that of traditional biopharma companies. Notably, the organization is developing a new brand of transformative medicine based on the mRNA platform and spearheading the transition of vaccine development from a chemical to a molecular base. Moderna Inc. has designed its processes and operations around genomics and data science, highlighting the distinctive presentation of the firm as a digital company. This perspective is corroborated by the unique modality through which the organization applies AI in vaccine development and across the scope of its operations.
The approach differs entirely from that adopted by the conventional biopharma entities, where vaccine development commenced with years of extensive research in laboratories followed by protracted clinical trials (Abbasi, 2020; Rosa et al., 2021). Additionally, the platform modality enables Moderna Inc. to be predictive as opposed to the reactive nature of the other vaccine developers, which positions the company favorably in the biotech field (Iansiti et al., 2021). Therefore, Moderna Inc.’s business model differs from that of traditional biotechnology and pharmaceutical firms due to its platform model, high dependence on AI, and the departure from the conventional chemical to molecular base approach.
Through vertical integration, Moderna Inc. is in complete control of the entire process of vaccine development. Although this was primarily due to the platform nature of their operations, it allowed them to exercise greater supervision and management, facilitating the speedy execution of processes. Additionally, the firm adopted cross-functional integration, which enabled the coordination and harmonization of operations across all organizational levels. Oliviera et al. (2016) posit that such an integration model enhances flexibility and improves development lead times by sharing information and equipment. This contrasts with the operational model adopted by traditional pharmaceutical organizations, where such processes as research and development and clinical trials are substantially distinct (Iansiti et al., 2021).
Moreover, Moderna Inc. is a relatively small and agile firm relying on fewer key players than its competitors, which adopt a more bureaucratic structure. Consequently, there is a speedy transfer of information and vision and avoids structural rigidity, which could impede productivity. Thus, Moderna Inc. is a vertically integrated organization with extensive cross-functional integrity, fostering flexibility, agility, and rapid cascading of vision, translating to the swift realization of results.
The Creation of a Separate Standalone Covid−19 Entity
Following Moderna Inc.’s successful development of the COVID-18 vaccine, it would be beneficial for the organization to establish an independent, standalone entity. Indeed, such a divestiture is expected to be significantly lucrative considering the breakthrough it has achieved in the development of Covid−19. Notably, considering the magnitude of the pandemic, Moderna Inc. must devote substantial resources toward a fully-fledged COVID-19 vaccine establishment.
According to Hessels et al. (2020), such a separation would improve the operational effectiveness of the two entities by focusing on their core activities. Additionally, such an approach will promote the overall competitiveness of the two entities due to the ability to upgrade and innovate within their respective areas of operation. Navatte and Schier (2017) contend that divestitures enable the parent company and the newly created organization to generate more value from their operations and processes due to increased specialization and simplified structures. For instance, if Moderna Inc. were to create an independent firm devoted to producing the COVID-19 vaccine, it would significantly relieve the parent company’s substantial pressure occasioned by the pandemic. Therefore, Moderna Inc. should create a distinct standalone entity dedicated to the manufacture of the Covid−19 vaccine.
Additionally, the COVID-19 immune booster significantly improved the company profile of Moderna Inc. This implies that a standalone entity associated with the parent firm would commence its operations with critical competitive advantages, including extensive experience and knowledge of mRNA technology. In this regard, the standalone firm would continue reaping from the successes already realized in Covid−19 vaccine development.
Moreover, the parent company would provide any technical assistance required and allow the firm to focus on the strategic priority of COVID-19 vaccine production. This is closely associated with enhanced agility, flexibility, and agility, which are inherent benefits of divesting. Consequently, the two entities would be strategically positioned to offer swift responses and precise operations, especially during global emergencies. From this perspective, Moderna Inc. should create a separate standalone entity devoted to developing and producing the Covid-19 vaccine.
Important Priorities for Moderna Inc.
The rapid and successful development of the COVID-19 vaccine based on the mRNA platform marked a new era in the science of creating a new brand of transformative medicines. Nucleic acid therapeutics have proven to be effective alternatives to traditional vaccine approaches. The novel mRNA platform adopted by Moderna Inc. to rapidly develop the COVID-19 vaccine is a significant boost to the transformative potential of the technology in revolutionizing the field of human medicine. However, this is the only commercial product for Moderna Inc, despite having numerous vaccine candidates for different diseases at diverse production phases. From this perspective, the organization must devise approaches to fast-track the eventual completion of the other vaccines in its pipelines and eventually commercialize them. Additionally, Moderna Inc. should initiate and accelerate research and development approaches to commence clinical trials against additional disease targets. Since the company has registered success in nucleic acid therapeutics, it is now considerably easy to redirect the insights and discoveries to other pressing sicknesses.
Another priority for Moderna Inc. is to fully explore the risks associated with mRNA vaccines and their long-term effects. Similarly, there are major concerns about the potential toxic impacts, high innate immunogenicity, and instability, especially in high temperatures, which necessitates specialized transportation. This is a significant challenge to mRNA technology since it frustrates rapid development and large-scale deployment. In this regard, Moderna Inc. should prioritize creating a more versatile vaccine platform by improving the existing mRNA knowledge.
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