$2 Billion Convertible Note Offering to Fuel Moderna's Oncology Push

Moderna, a biotechnology company based in Cambridge, Massachusetts, plans to raise $2 billion through a private placement of convertible senior notes due 2032. The funds will be used to finance its oncology pipeline and repay debt, following the success of its personalized melanoma vaccine developed with Merck.

The announcement comes after Moderna and Merck reported positive Phase 3 results for their individualized mRNA cancer vaccine, which reduced melanoma recurrence and slowed metastasis in a trial of over 1,100 patients. The company's shares have recovered significantly this year, rising 369% year-to-date to levels not seen since 2024.

The convertible note structure will allow Moderna to deliver cash, common stock, or a combination of both upon conversion, with the initial conversion rate set at pricing. Part of the proceeds will be used for capped call transactions to limit potential dilution, while the remainder will be directed toward general corporate purposes, including investment in its oncology business and repayment of existing debt.