While there’s still potential for near-term revenue tailwinds in the form of emerging infectious diseases, I’m concerned that the company may never deliver Best ai stocks 2022 on its pipeline potential. One reason for this is the company’s extraordinary cash burn, and another is that these formative loss-making years may be negatively impacted by changing federal policy with a vaccine skeptic taking to the Department of Health and Human Services. As much as I like to take a positive opinion on Moderna, I’m bearish for now, as investing in it could be dead money.
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- The company was formerly known as Moderna Therapeutics, Inc. and changed its name to Moderna, Inc. in August 2018.
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- Its product pipeline includes prophylactic vaccines, localized regenerative therapeutics, cancer vaccines, systemic secreted therapeutics, intratumoral immuno-oncology and systemic intracellular therapeutics.
- Furthermore, the company has a collaboration and license agreement with Chiesi Farmaceutici S.P.A.
- This transition is fraught with hurdles, rooted in both logistical expansions and evolving market expectations.
This could present a huge challenge for Moderna, which has a large portfolio of vaccines in development while also hemorrhaging cash. But with Moderna scaling back its COVID operations and demand for the shots likely being lower in the future, I would be surprised if this were still a major source of revenue for the business in five years. If it is still relying on COVID revenue, that could be a bad sign, indicating that the company hasn’t come out with more promising products along the way.
Moderna Inc. is experiencing significant stock movement, with shares trading up by 9.62 percent on Friday, driven by developments surrounding its collaborative vaccine efforts and recent contract wins. Even at a reduced market cap of $36 billion, investors would be paying a big premium for the healthcare stock, which is why I expect Moderna’s value to decline over the next five years. The launch of the RSV vaccine is already being planned for by the company, which believes there is a $10 billion global market for this drug. In 2023, other companies sold approximately $2.3 billion in RSV vaccines, demonstrating the opportunity Moderna has in this market. What followed was a wild ride in which Moderna burst into the public consciousness as it developed and began selling one of the COVID-19 vaccines, putting the company and its mRNA technology at the forefront of investors‘ minds. Nearly four years later, the company is in a curious spot as it still has only one commercially available product.
Top institutional shareholders of Moderna include Baillie Gifford & Co. (11.05%), FMR LLC (4.52%), State Street Corp (4.38%) and Geode Capital Management LLC (1.84%). Insiders that own company stock include Stephane Bancel, Noubar Afeyan, Stephen Hoge, Shannon Thyme Klinger, Juan Andres, James M Mock, Arpa Garay and David W Meline. Moderna Inc. is actively working to develop a range of pharmaceutical solutions and vaccines and to increase its strategic alliances. The company has seen success in its innovative mRNA technologies, and its growing partnerships have given them an edge over its competitors.
mRNA Synthesis & Manufacturing Market – Global Forecast to 2029
Interestingly, despite the decrease, Moderna reported gross profits of around $1.35B – a testament to its strong cost management strategies, albeit shadowed by a total expense bill exceeding $1.93B. The nomination of a vaccine skeptic to the most important job in U.S. healthcare compounds my concerns about the company’s earnings this obscure indicator is a significant concern for the market trajectory. According to the current consensus forecasts — most of the forecasts were made before the MAHA nomination — Moderna won’t return to profitability until the financial year ending December 2029. In fact, the company is currently forecasted to report a loss of $9.32 in 2024 and $8.81 in 2025.
Barclays lowered their target price on shares of Moderna from $125.00 to $111.00 and set an „overweight“ rating for the company in a research note on Friday, November 8th. Bank of America lowered their price objective on shares of Moderna from $130.00 to $110.00 and set a „neutral“ rating for the company in a research note on Friday, September 13th. UBS Group dropped their price objective on shares of Moderna from $140.00 to $108.00 and set a „buy“ rating on the stock in a report on Thursday, October 24th. Hsbc Global Res upgraded Moderna from a „hold“ rating to a „strong-buy“ rating in a research note on Monday, November 18th.
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The company was formerly known as Moderna Therapeutics, Inc. and changed its name to Moderna, Inc. in August 2018. Moderna, Inc. was founded in 2010 and is headquartered in Cambridge, Massachusetts. Moderna Inc. operates in multiple therapeutic areas, including infectious diseases, immuno-oncology, rare diseases, autoimmune diseases and cardiovascular diseases. Its product pipeline includes prophylactic vaccines, localized regenerative therapeutics, cancer vaccines, systemic secreted therapeutics, intratumoral immuno-oncology and systemic intracellular therapeutics. The biotech company had seen both sales and its stock price plummet as demand for its coronavirus vaccine waned, but seemed to be on the road to recovery.
According to 17 analysts, the average rating for MRNA stock is „Hold.“ The 12-month stock price forecast is $83.0, which is an increase of 101.90% from the latest price. Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. While stock price movement reflects these multilayered dynamics, the reality of managing expectations amidst scientific innovations cannot be overstated. This blend of enthusiasm and market tethering makes the stock a curious study of growth amidst uncertainty. Earlier this month, the company swung to a surprise profit and topped revenue estimates for the third quarter following the launch earlier this year of its updated COVID-19 vaccine. Moderna head of investor relations Lavina Talukdar said at the Jefferies London Healthcare Conference on Thursday that the Cambridge, Mass.-based company sees 2028 as the year by which its revenue can sustain its business.
The bad news is that Moderna will take longer than originally expected to get to the break-even point. Shareholders who have already been disappointed by declining sales in recent years won’t take this lightly. And if you haven’t yet invested in Moderna, you may not see the biotech as an exciting growth player at the moment. As part of this, Moderna is cutting its R&D investment for the period of 2025 through 2028 by 20%, to $16 billion. This doesn’t mean the company will neglect its high-priority programs, though — it will actually increase its investment in oncology, for example, while slowing investment in other areas like rare-disease therapeutics.