Full Answer
Why did Moderna stock rally by 10% on Monday?
On Monday, Moderna (NASDAQ: MRNA) stock rallied by over 10% after the company said that its Covid-19 vaccine – which is based on messenger RNA technology – was 94.5% effective based on preliminary data. Investors have good reason to be optimistic about Moderna for multiple reasons.
Why did Moderna's stock price drop?
However, that wasn't the reason why Moderna's stock price slid. The more likely factors driving it lower were an overall stock market decline and the news that Sanofi (NASDAQ: SNY) and GlaxoSmithKline (NYSE: GSK) are preparing to file for regulatory authorizations of the COVID-19 vaccine they developed jointly.
Is Moderna’s stock worth $150 per share?
While Moderna’s stock trades at about $150 per share, its valuation still looks reasonable at about 25x our projected 2020 EPS. That’s below the S&P 500 that trades at about 26x projected earnings. [3] However, it should be noted that sales of the vaccine will be significantly front-loaded.
Why did Moderna lead the S&P 500 in healthcare stocks higher?
The shares of Cambridge, Massachusetts-based Moderna (MRNA) led the S&P 500 as healthcare stocks in the broader index closed higher thanks to the gains of pharma and biotech stocks.
What happened
Shares of Moderna (NASDAQ: MRNA) were slipping 2.7% lower as of 11:27 a.m. ET on Tuesday after falling as much as 4.8% earlier in the morning. This decline came despite Morgan Stanley analyst Matthew Harrison stating today that Moderna's shares could jump between 10% and 20% with positive early data for its experimental flu vaccine.
So what
What should investors believe with two different perspectives on Moderna? Perhaps a little of both.
Now what
Investors will certainly want to pay attention to Moderna's forthcoming phase 1 results for mRNA-1010. But the more important thing to watch is the company's success in securing supply deals for SpikeVax for 2022 and beyond.
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How does Moderna work?
Once the genetic code of a virus is available, Moderna essentially adapts messenger RNA to trigger the immune system to produce protective antibodies without using the actual part of the virus , unlike traditional vaccines. For perspective, the Covid-19 vaccine was apparently designed within a few days. [4] .
How much does Moderna cost?
Moderna’s vaccine will also be more expensive than rivals, as it is likely to cost between $25 and $37 per dose, depending on the volume of the order, compared to about $19 per dose for the Pzifer vaccine. See our indicative theme of Covid-19 Vaccine stocks – which includes U.S.-listed pharma and biotech companies.
How many doses of Moderna are there?
FDA last week, with vaccinations likely to begin as soon as Monday. Initial shipments are likely to stand at about 6 million doses, with total shipments by the end of the month likely to rise to about 20 million. This is larger than the Pfizer (NYSE: PFE) vaccine, which has delivered 2.9 million doses to date and has more stringent shipping and storage requirements. While the financial impact of the vaccine is likely to be limited for Moderna this quarter – with consensus pointing to about $250 million in Revenue, the number should scale up considerably to over $1.3 billion in Q1 2021, with Moderna likely to post a quarterly profit.
How much is Moderna revenue in 2021?
While the financial impact of the vaccine is likely to be limited for Moderna this quarter – with consensus pointing to about $250 million in Revenue, the number should scale up considerably to over $1.3 billion in Q1 2021, with Moderna likely to post a quarterly profit.
How is mRNA produced?
Unlike traditional vaccines which use a virus protein that needs to be grown over the course of weeks, mRNA molecules – which instruct the body to produce virus proteins by itself – are less complex and are produced via a chemical process (rather than a biological process) making mass production much quicker.
Where is Moderna manufactured?
Moderna is working with multiple partners to produce its vaccine. Switzerland-based Lonza, one of the world’s largest pharmaceutical services companies, will produce the key mRNA active ingredient for the vaccine in New Hampshire and Switzerland.
When will Moderna go to phase 3?
Moderna’s Cytomegalovirus (CMV) vaccine, which is currently in phase 2 studies and could move to phase 3 in 2021, is likely to be the company’s first candidate for approval after its Covid-19 vaccine. See our indicative theme of Covid-19 Vaccine stocks – which includes U.S.-listed pharma and biotech companies.
What happened
Shares of Moderna (NASDAQ: MRNA) were down by 5.3% as of 1:25 p.m. ET Wednesday. The company announced a long-term collaboration with Thermo Fisher Scientific to manufacture messenger RNA (mRNA) vaccines. However, that wasn't the reason why Moderna's stock price slid.
So what
Sanofi and GlaxoSmithKline reported that the efficacy for two doses of their vaccine was 57.9%. That's well below the initial reported efficacy of 94% for a two-dose regimen of Moderna's COVID-19 vaccine, now being marketed as Spikevax. So why did Moderna's share price fall?
Now what
Sanofi and GSK are already in talks with the Food and Drug Administration and other regulatory agencies about submitting data to support the authorization of their COVID-19 vaccine. If the new vaccine is approved, it could negatively impact Moderna's future supply deals.
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The biotech's vaccine for the new coronavirus outbreak could help as the disease continues to spread
Dr. Orelli is a Senior Biotech Specialist. He has written about biotech, pharmaceutical, and medical device companies for The Motley Fool since 2007. Follow @BiologyFool
What happened
Shares of Moderna ( NASDAQ:MRNA) are up 14% at 1:01 p.m. EST on Monday, having been up as much as 18.6% today, likely because COVID-19, the illness caused by the new coronavirus, continues to spread globally.
So what
Moderna has already created a vaccine, mRNA-1273, which the biotech has shipped to researchers at the National Institute of Allergy and Infectious Diseases. A clinical trial is scheduled to start this month, which will produce early initial results by August.
Now what
While mRNA-1273 offers an opportunity for Moderna to generate revenue quicker than it likely will with its pipeline of drugs, biotech investors should be cautious about penciling in too much future revenue into their valuation models.
The biotech is strengthening its coronavirus vaccine production network
Joe honed his investing skills as an analyst for Stock Advisor, Supernova, and Fool One. He battle-tested his investment philosophy and strategies as portfolio manager of Tier 1, a market-crushing Motley Fool real-money portfolio that delivered 24.58% annualized returns during its existence.
What happened
Shares of Moderna ( NASDAQ:MRNA) climbed 5.5% on Thursday after the biotechnology company said that it had struck a deal with a key manufacturer for its experimental COVID-19 vaccine.
So what
Moderna will collaborate with European pharmaceutical company Laboratorios Farmaceuticos ROVI to potentially produce large-scale quantities of Moderna's novel coronavirus vaccine candidate mRNA-1273.
Now what
Moderna's vaccine candidate has delivered promising phase 1 results. The biotech currently has a phase 2 trial underway, and it's hoping to begin a phase 3 trial in the coming weeks.
