Is It Too Late to Buy Moderna Stock?

Moderna Inc (NASDAQ:MRNA) is a Massachusetts-based biotechnology company that created the mRNA-1273 vaccine for COVID-19. This made it one of the most talked about pandemic stocks, and the implications of messenger RNA treatments extend far beyond this one virus.

But now that it’s valued over $60 billion, is it too late to buy Moderna stock?

The company built more than a vaccine – it has a broad pipeline of mRNA-based pharmaceuticals to tackle a wide range of afflictions. Its SARS-CoV-2 vaccination uses synthetic nucleoside-modified mRNA coated with lipid nanoparticles to trigger our body’s natural defenses against the viral infection.

And the shares could be a bargain. Although they’re much more expensive than they were just a couple of years ago; MRNA is “only” trading at six times its forward earnings estimates. That means it could still be a value relative to the sector and greater market.

What Is the Effectiveness of Moderna COVID-19 Vaccine?

The three major vaccines approved through an Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA) are from Pfizer (PFE), Moderna, and Johnson & Johnson (JNJ). Pfizer and Moderna’s vaccines use mRNA, while the J&J vaccine uses a viral vectored vaccine (a genetically engineered adenovirus) to trigger the SARS-2 immune response.

Moderna’s vaccine showed 94.1-percent efficacy of preventing symptomatic Covid in clinical trials. This compares to Pfizer’s 95-percent efficacy and J&J’s 72-percent effectiveness in the United States.

Two 100-microgram doses of the Moderna vaccine are needed, although the government’s vaccine development program wants to test how well it works when matching Pfizer’s two 30-microgram doses. And the continued existence of new coronavirus strains after the initial outbreak has some investors optimistic about the sustainability of its revenue streams.

Why Are mRNA COVID-19 Vaccines Exciting Investors?

Many initially thought the pandemic would end within a year, but it has stretched long past that. In fact, most experts agree it could become a seasonal infection that we must add to the list of annual or semi-annual vaccines to consider.

Over 50 million Americans were fully vaccinated by Moderna’s mRNA treatment in the first six months of its launch. It will have delivered 300 million doses to the U.S. by the end of July, making it one of the leading vaccine providers at $19.2 billion in product sales for the year.

And that’s just this first round – if the predictions prove true, Moderna will continue serving us coronavirus vaccines well into our golden years. It’s already developing new vaccinations for variants detected around the world. By the end of the year, the company could have a full arsenal of coronavirus-targeting treatments.

That’s just one part of its full possible revenue streams.

Will Moderna Stock Go Up From Here?

Moderna may be struggling to break out from its initial pandemic surge, but this is just the proof of concept for its mRNA platform. It’s other programs leverage the technology to train our bodies to prevent or treat a variety of health conditions using proteins.

This includes treatments for the seasonal flu, HIV, and the cytomegalovirus (CMV). Each of these infections can be deadly, and AIDS in particular still has no cure.

Just typing the sentence, “the coronavirus is just the beginning,” is an exciting prospect. The company has a variety of potential recurring revenues streams, and its CMV vaccine candidate is the closest to being released on the market.

That candidate is recruiting for phase 3 trials and could help pregnant women with compromised immune systems. On top of this, the company is in phase 2 trials for two cancer and a heart disease candidate. The company could prove to be a bargain for investors buying the dips today.

Will Other Vaccine Manufacturers Take Moderna’s Market Share?

A potential problem in Moderna’s vaccine is that it’s more than triple the dose as Pfizer’s. And both require two treatments to be effective, while J&J’s vaccine only requires one. Several other companies have alternative treatments undergoing late-stage clinical trials too.

Moderna can’t rest on its laurels and needs to continue pushing research and development. Luckily, it met its Operation Warp Speed requirements to get its full grant money to cover a lot of ground in its coronavirus-related development.

That gives the company a big head start against much of the competition. And its contracts are guaranteed through 2023, so there shouldn’t be any potential problems until then. That also gives it a timeline for development on new strains, and that’s again just focusing on the coronavirus aspect of its potential revenue streams.

If its cancer, heart disease, HIV, and AIDS treatments prove effective within our lifetimes, we can all expect to live a lot longer. The company is swinging for the fences on increasing the longevity of human life, and it could possibly scale enormously if successful.

Is It Too Late to Buy Moderna Stock?

Moderna is a biotechnology company and leading coronavirus vaccination maker next to Pfizer. The company released one of the first candidates that successfully passed through FDA clinical trials to receive an emergency authorization.

That early-lead advantage helped solidify guaranteed sales from long-term government contracts. And the coronavirus pandemic could become a seasonal affliction requiring multiple boosters against mutated and evolved strains.

The company has through 2023 to grow its revenues streams, and new coronavirus variants are only part of the plan. It’s also using its mRNA technology platform to develop treatments for major diseases like heart disease, cancer, and AIDS. Should these prove as effective, today’s investors could easily see 10x returns or more.

---

The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.