MODERNA STRATEGIC

PLAN (2023-2025)
7assona Group (Friday F5)

Under the Supervision of Dr. Osama Mosallam

TEAM MEMBERS

1. Mona Mostafa
2. Beshoy Zakaria
3. Yasser Shawky
4. Mohamed Saleh
5. Ahmed Fathy

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 CONTENTS:

1. Vision
2. Mission
3. The Situational Analysis:
A. SWOT Analysis
B. Internal Factor Evaluation (IFE)
C. External Factor Evaluation (EFE)
D. PESTEL Analysis
E. Porter’s Five Forces
F. The Competitive Profile Matrix (CPM)
G. BCG Matrix
H. SPACE Matrix
4. The Strategic Goals
5. The Suggested Strategies
6. QSPM
7. The SMART Objectives 3
Our Vision
We Will Maintain
Humanity’s
Healthcare

4
We create a new
generation of
medicines using
the mRNA
science. 5
 Situational Analysis

Project analysis slide 2

SWOT CPM

PESTEL
Moderna BCG Matrix
IFE & EFE

Porter’s Five Forces SPACE Matrix

 SWOT Analysis

Project analysis slide 8

Strengths Weaknesses

1. Strong propriety infrastructure.

2. Strategic alliances to accelerate advancement 1. Poor track record with no marketable products
of potential mRNA drugs and no revenue
Controllable

3. Patent and IP estate as strategic assets 2. Continuous losses since inception

4. Covid-19 vaccine from Moderna 3. Lack of experience in sales and distribution
5. Reduced Cycle Times
6. High-qualified Staff
7. Strong relationship with Governmental
Associations.

Opportunities Threats
Uncontrollable

1. Covid-19 Vaccine efficiency and side effects

1. Massachusetts as a booming biotech hub
2. Mutations of Covid-19 resulting in new variants
2. mRNA potential for new class of medicines
3. Regulatory changes may increase the competition from
3. Untapped local production
biosimilars
4. Risks inherent in pharmaceutical operations and supply
chain
 Internal Factor Evaluation (IFE)
Strengths Weight Rating Weighted Score
1 Strong property infrastructure (Digitization) 0.15 4 0.60
2 Strategic alliances to accelerate advancement of potential mRNA 0.10 4 0.40
3 drugs and IP estate as strategic assets
Patent 0.10 3 0.30
4 Covid 19 vaccine from Moderna’s stable helping fight global health 0.10 4 0.40
5 emergency
Having high qualified staff 0.15 4 0.60
6 Having strong relationship with US Governmental associations 0.05 3 0.15
7 Reduced Cycle times 0.10 4 0.40

Weaknesses Weight Rating Weighted Score

1 Poor track record with no marketable products and no revenue 0.10 1 0.10
2 Continuous losses since inception 0.05 2 0.10
3 lack of experience in sales and distribution 0.10 1 0.10
Total IFE Score 1.00 3.15

As shown in the above IFE matrix, the sum of weighted values is equal to 3.15
which means that Moderna is in a strong position as the value is above 2.50.
 External Factor Evaluation (EFE)
Opportunities Weight Rating Weighted Score
1 Massachusetts as a booming biotech hub 0.15 4 0.6
2 mRNA potential for new class of medicines 0.20 4 0.8
3 Untapped local production 0.10 3 0.3

Threats Weight Rating Weighted Score

1 Covid 19 Vaccine efficiency and side effects 0.15 1 0.15
2 Mutations of Covid-19 resulting in new variants 0.15 2 0.30
3 Regulatory changes may increase the competition from biosimilars 0.10 1 0.10
4 Risks inherent in pharmaceutical operations and supply chain 0.15 2 0.30
Total EFE Score 1.00 2.55

Based on the EFE matrix, the above obtained sum of values is weighted by 2.55
showing that Moderna is in a good position.
 PESTEL Analysis

Project analysis slide 3

Techno- Environ-
Political Economic Social Legal
logical mental
Factors Factors Factors Factors
Factors Factors
 POLITICAL FACTORS:

 Pharma industry is highly regulated.

 Some countries set a price cap for prescribed drugs.
 As a US company, it is not easy to penetrate the European market with existing
European competitors.
 The political considerations, especially post the Russian-Ukraine crisis.
 The feasibility of Asian market at present and in the future.
 The MENA region is a promising market.
 Relative ease of expansion in the African market.
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 ECONOMIC FACTORS:

 Pharma industry is considered as a non-cyclical industry that does not

fluctuate with business cycles (defensive industry)

 Households income is rising around the world.

 The current inflation wave hitting the world after the Russian-Ukrainian
crisis may affect the company’s business.

 The hike in interest rates by the Fed Reserve to curb inflation. 12

SOCIAL FACTORS:

 Health awareness programs & healthy lifestyle around the globe.

 Junk food and health conditions like diabetes, thyroid & hypertension.

 The high incidence rates of cancer and cardiovascular diseases in the

USA.

 More focus on exploring treatments for rare diseases and raising

awareness about them. 13
TECHNOLOGICAL FACTORS:

 Research & biotechnological innovations.

 Safe storage of drugs.

 Moderna successfully transformed into a digital company.

 Moderna is using the clouding service provided by Amazon Web

Service.
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ENVIRONMENTAL FACTORS:

 Medical wastes are very dangerous to the environment and may also be
hazardous for people’s health.

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 LEGAL FACTORS:

 Pharma companies may face heavy legal cases in case they failed to
comply with the previously settled guidelines.

 They must ensure the safety of their drugs to avoid other legal issues.

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MODERNA’S COMPETITORS

 Celyad

 CureVac

 Regulus Therapeutics

 Pfizer

 Johnson & Johnson 18

THE BARGAINING POWER OF BUYERS

 Customer loyalty is weak.

 Customers are highly price-sensitive

 There are a lot of substitutes and competitors

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THE BARGAINING POWER OF SUPPLIERS

 Number of suppliers is high.

 Standardized products supplied.

 No other substitutes for the products supplied.

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THREAT OF NEW ENTRANTS

 Moderna can take advantage of the economies of scale it has within the
industry, fighting off new entrants.

 Moderna can focus on innovation to differentiate its products from that

of new entrants.

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THREAT OF SUBSTITUTES

 Moderna can focus on providing greater quality in its products.

 Moderna can focus on differentiating its products.

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 Competitive Profile Matrix (CPM)
Moderna Phizer Johnson & Johnson

Critical Success Factors Weight Rating Score Rating Score Rating Score
Capacity for Innovation 0.20 4 0.80 2 0.40 2 0.40
Market Penetration 0.01 4 0.04 4 0.04 3 0.03
Human Capital 0.01 4 0.04 3 0.03 3 0.03
Manufacturing Locations 0.10 2 0.20 4 0.40 3 0.30
R&D 0.20 4 0.80 3 0.60 3 0.60
Digitalization 0.10 4 0.40 1 0.10 1 0.10
Financial Profit 0.02 1 0.02 4 0.08 3 0.06
Customer Loyalty 0.01 1 0.01 4 0.04 2 0.02
Market Share 0.05 2 0.10 3 0.15 2 0.10
Product Quality 0.20 3 0.60 3 0.60 1 0.20
Product Development Duration 0.05 4 0.20 1 0.05 1 0.05
Price Competitiveness 0.05 2 0.10 2 0.10 3 0.15
Totals 1.00 3.31 2.59 2.04

From the above analysis, it is evident that Moderna has a great potential of
success, compared to its rivals in the market.
As Moderna has currently a low market share while the potential of market
growth is high, then its position should be in the “Question Mark Quadrant”.
 SPACE Matrix
Internal Analysis: External Analysis:
Financial Strength (FS) Environmental Stability (ES)
Return on Investment (ROI) 6 Rate of Inflation -3
Leverage 3 Technological Changes -2
Liquidity 4 Price Elasticity of Demand -2
Working Capital 6 Competitive Pressure -5
Cash Flow 4 Barriers to Entry into Market -4
Financial Position (FP) Average 4.6 Stability Position (SP) Average -3.2

Internal Analysis: External Analysis:

Competitive Advantage (CA) Industry Strength (IS)
Market Share -3 Growth Potential 4
Product Quality -2 Financial Stability 6
Customer Loyalty -5 Ease of Entry into Market 1
Technological know-how -1 Resource Utilization 5
Control over Suppliers and Distributors -1 Profit Potential 6
Competitive Position (CP) Average -2.4 Industry Position (IP) Average 4.4
 SPACE Matrix
FS
Conservative 7.0 Aggressive

5.0

3.0

1.0
​
CA IS
-7.0 -5.0 -3.0 -1.0
-1.0 1.0 3.0 5.0 7.0

-3.0

-5.0

Defensive -7.0 Competitive

ES

According to the above analysis, it can be seen that Moderna lies in the
aggressive quadrant.
 Strategic Goals

Project analysis slide 6

 Expanding on drug  Accelerating vaccine  Expanding Moderna
discovery using the development Technology Center (MTC)
mRNA science in Norwood

 Increasing manufacturing  Completing the establishment

at Moderna’s facilities in of the new science center in
the USA Cambridge

 Increasing manufacturing at  Attracting professional

overseas facilities cadres to join Moderna’s
team

 Supporting our subsidiaries in  Fostering our mRNA facility  Providing training

Australia, Europe, Japan, North built in Africa programs to all of the team
America and South Korea
 THE SUGGESTED STRATEGIES

Purple Ocean Forward Integration Market Development

Product Development Horizontal Diversification

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 QSPM
Forward Integration Product Deve lopme nt
Strengths Weight AS TAS AS TAS
1 Strong property
Strategic infrastructure
alliances (Digitization)
to accelerate advancement of potential mRNA 0.15 2 0.30 4 0.60
2 drugs 0.10 4 0.40 3 0.30
3 Patent and IP estate as strategic assets 0.10 1 0.10 4 0.40
Covid 19 vaccine from Moderna’s stable helping fight global
0.10 3 0.30 3 0.30
4 health emergency
5 Having high qualified staff 0.15 2 0.30 4 0.60
6 Having strong relationship with US Governmental associations 0.05 1 0.05 2 0.10
7 Reduced Cycle times 0.10 3 0.30 4 0.40

Weaknesses Wei ght AS TAS AS TAS

1 Poor track record with no marketable products and no revenue 0.10 4 0.40 3 0.30
2 Continuous losses since inception 0.05 3 0.15 2 0.10
3 lack of experience in sales and distribution 0.10 3 0.30 2 0.20

Opportuni ti es Wei ght AS TAS AS TAS

1 Massachusetts as a booming biotech hub 0.15 1 0.15 4 0.60
2 mRNA potential for new class of medicines 0.20 1 0.20 4 0.80
3 Untapped local production 0.10 1 0.10 2 0.20

Threats Wei ght AS TAS AS TAS

1 Covid 19 Vaccine efficiency and side effects 0.15 2 0.30 3 0.45
2 Mutations of Covid-19 resulting in new variants 0.15 4 0.60 4 0.60
Regulatory changes may increase the competition from
0.10 3 0.30 2 0.20
3 biosimilars
4 Risks inherent in pharmaceutical operations and supply chain 0.15 1 0.15 1 0.15
STAS 4.40 6.30

According to the QSPM, the Product Development Strategy is recommended for

Moderna; as it has a weighted score of (6.30) which is higher than the Forward Integration
Strategy.
 SMART OBJECTIVES

2023 Objectives
1. Discover new medicines for breast cancer and leukemia using the mRNA science and
complete phase 2 in the clinical trials by end of 2023.

2. Develop vaccines for new corona variants, if any, and get the FDA approvals within 2
months from virus discovery.

3. Complete the establishment of the new science center in Cambridge by end of 2023.

4. Increase manufacturing of drug substances at Moderna’s facilities in the USA by 40%,

compared to the production rate at end of 2022.
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 SMART OBJECTIVES
2023 Objectives (Cont.)

5. Increase the production of mRNA vaccines in our subsidiaries in Australia, Europe, Japan, North
America and South Korea by 30% by end of 2023, the production rate at end of 2022.

6. Double manufacturing at overseas facilities; including: Lonza’s Switzerland-based facility and

Rovi’s Spain-based facility by end of 2023.

7. Add 2 new pipelines in our mRNA facility in Africa other than COVID-19 vaccine by end of 2023.

8. Recruit 100 professional cadres to join Moderna’s team in 2023.

9. Provide training programs to all new comers in 2023 at Moderna AI Academy in partnership with
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Carnegie Mellon University.
 SMART OBJECTIVES

2024 Objectives
1. Get FDA approvals for the new discovered medicines for breast cancer and leukemia using
the mRNA science by end of 2024.
2. Discover new treatments for two of the infectious diseases (namely: Chlamydia and
Influenza A & B) using the mRNA science and complete phase 2 in the clinical trials by
end of 2024.
3. Discover new treatments for two of the auto-immune diseases (namely: Multiple sclerosis
and Rheumatoid arthritis) using the mRNA science and complete phase 1 in the clinical
trials by end of 2024.
4. Increase manufacturing of drug substances at Moderna’s facilities in the USA by 30%,
compared to the production rate at end of 2023.
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 SMART OBJECTIVES
2024 Objectives (Cont.)

5. Increase the production of mRNA vaccines in our subsidiaries in Australia, Europe, Japan,
North America and South Korea by 20% by end of 2024, compared to the production rate at
end of 2023.
6. Increase manufacturing at overseas facilities; including: Lonza’s Switzerland-based facility
and Rovi’s Spain-based facility by 30% by the end of 2024, compared to the production rate
at end of 2023.
7. Recruit 150 professional cadres to join Moderna’s team in 2024.
8. Provide training programs to all new comers in 2024 at Moderna AI Academy in partnership
with Carnegie Mellon University.

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 SMART OBJECTIVES

2025 Objectives
1. Get FDA approvals for the new discovered treatments for two of the infectious diseases
(namely: Chlamydia and Influenza A & B) using the mRNA science by end of 2025.

2. Discover new treatments for one of the rare diseases (namely: Ehlers-Danlos syndrome)
using the mRNA science and complete phase 1 in the clinical trials by end of 2025.

3. Discover new treatments for the lung cancer using the mRNA science and complete
phase 1 in the clinical trials by end of 2025.

4. Complete phase 2 for the new treatments discovered for two of the auto-immune
diseases (namely: Multiple sclerosis and Rheumatoid arthritis) using the mRNA science 34

by end of 2025.
 SMART OBJECTIVES
2025 Objectives (Cont.)
5. Increase manufacturing of drug substances at Moderna’s facilities in the USA by 30%,
compared to the production rate at end of 2024.
6. Increase the production of mRNA vaccines in our subsidiaries in Australia, Europe,
Japan, North America and South Korea by 30% by end of 2025, compared to the
production rate at end of 2024.
7. Increase manufacturing at overseas facilities; including: Lonza’s Switzerland-based
facility and Rovi’s Spain-based facility by 40% by the end of 2025, compared to the
production rate at end of 2024.
8. Recruit 300 professional cadres to join Moderna’s team in 2025.
9. Provide training programs to all new comers in 2025 at Moderna AI Academy in
partnership with Carnegie Mellon University. 35
Thank You