First, remember that Moderna stock is rising because it was small and came out of nowhere. While that obscurity meant huge gains when it entered the spotlight, it also doesn’t have the proven track record that Pfizer Inc. has. In other words, there’s a higher risk with Moderna Inc. Sure, the vaccine is effective, but is it safe?
Full Answer
Is Moderna stock more than half the size of Pfizer?
There are basically four possible answers as to why Moderna is more than half the size of Pfizer right now: Moderna really deserves to be roughly half the size of Pfizer because of its stronger growth prospects. Moderna stock is overvalued.
Why is Moderna’s stock down 25% over the last two weeks?
Moderna’s (NASDAQ: MRNA) stock has declined by roughly 25% over the last two weeks. While news from the company has been largely positive, with its Covid-19 vaccine receiving emergency approval from the U.S. FDA and dosing starting in the U.S., the decline in the stock is likely largely technical.
Is Moderna Biotech stock overvalued?
The key question is whether or not Moderna is also overvalued. My view is that Moderna's messenger RNA (mRNA) platform gives the company tremendous growth potential over the long term. The biotech stock doesn't appear to be priced at a premium based on its forward earnings multiple of a little under 13.
Is Pfizer stock up or down over the last month?
However, Pfizer stock is up over the last month while the other two vaccine stocks have plunged more than 20%. Cuba Gooding, Jr.'s character in the movie Jerry Maguire had a famous line that seems applicable for Pfizer, BioNTech, and Moderna: "Show me the money."
Investment Thesis
Moderna (NASDAQ: MRNA) and Pfizer (NYSE: PFE) are both the key beneficiaries of the world's battle against COVID-19, as the success of their highly efficacious mRNA vaccines have seen both companies' coffers swell even as the world is still struggling with its vaccination campaigns, especially in developing countries, as only 26.9% of the world population is fully inoculated against COVID-19.
Moderna's Lower Debt Load
Moderna total debt Vs. Cash & ST investments. Data source: S&P Capital IQ
Main Risks to Both Companies
Readers can observe from the Street's relative pessimism in both companies continuing their tremendous success over the next two years, and we think their concerns have a reasonable basis.
Why is Moderna stock so bad?
Moderna stock may suffer at times due to the company’s relative inexperience or lack of ability to meet demand. Which isn’t to say that this will happen, only that it might. Both stocks have opportunities for gains, but there’s a difference of degree.
How long does Pfizer track side effects?
U.S. regulators have instructed companies to track half their participants for side effects for at least two months, the time period in which complications typically crop up. Pfizer expects to reach that milestone soon, but said on November 9 that no serious safety concerns had been reported.
Does Pfizer have a track record?
The fact is that Pfizer has a longer and more solid track record of avoiding mistakes. Moderna, on the other hand, does not. That includes meeting demand, which is global for COVID-19 vaccines. Pfizer stock will benefit from the confidence and trust that investors have in the blue-chip company.
Is Moderna a smaller company?
Moderna Inc is a smaller company, with a $35.0-billion market cap, and much of that was gained over the past year. Pfizer Inc., on the other hand, has a $202.0-billion market cap, making it one of the largest pharma stocks in the world. As such, with even a potentially world-saving (that’s not even hyperbole in this case) vaccine on their hands, ...
Why is Moderna half the size of Pfizer?
There are basically four possible answers as to why Moderna is more than half the size of Pfizer right now: Moderna really deserves to be roughly half the size of Pfizer because of its stronger growth prospects. Moderna stock is overvalued. Pfizer stock is undervalued.
Who is Moderna's rival?
Pfizer ( NYSE:PFE) is Moderna's chief rival in the COVID-19 vaccine market. The drugmaker had half-a-dozen products that generated more than $1 billion in sales last year -- and that doesn't include its COVID-19 vaccine. It has scores of other products, too. Pfizer will probably rake in well over $70 billion this year.
Is biotech stock a premium?
The biotech stock doesn't appear to be priced at a premium based on its forward earnings multiple of a little under 13. However, I suspect that investors could be overly exuberant about the company's inclusion on the S&P 500 index.
NYSE: PFE
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NYSE: PFE
So why are these vaccine stocks tumbling today? Investors appear to be looking past the current surge in COVID-19 cases and expect a future where fewer vaccine doses are administered.
So what
Investors should always look forward. And the number of COVID-19 vaccine doses sold by Pfizer, BioNTech, and Moderna could very well decline significantly after 2022 (or perhaps 2023).
Now what
Cuba Gooding, Jr.'s character in the movie Jerry Maguire had a famous line that seems applicable for Pfizer, BioNTech, and Moderna: "Show me the money." The main thing for investors to watch with all three companies is the money -- in particular, supply deals for COVID-19 vaccines for beyond 2022.
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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 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 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 is Moderna's pipeline?
So, what has Moderna to offer beyond its potential COVID-19 vaccine? Well, the company’s pipeline has 21 mRNA therapies and vaccines, including four programs in Phase 2. Notably, Moderna’s Cytomegalovirus vaccine showed positive interim Phase 2 data and the company is now preparing for the Phase 3 trial in 2021. ( See MRNA stock analysis on TipRanks)
Does Moderna have a supply agreement with the US?
Meanwhile, Moderna has entered into supply agreements with several countries aside the US (200 million confirmed vaccine doses for the US alone), including Canada, the UK, EU and Singapore, subject to the approval by regulators.
Is Pfizer a better company than Upjohn?
Indeed, Pfizer seems to be in a better position following the spin-off of its generics business –Upjohn, which the company has combined with Mylan N.V. to form a joint venture called Viatris. Upjohn had long been a drag on Pfizer’s business and one of the reasons for the company’s lackluster performance in recent years.