Biotech
Tuesday, January 2nd, 2024 9:01 pm EDT
Key Points
- Moderna’s Stock Surge and Oppenheimer Upgrade: Moderna experienced a significant surge in its stock, rising over 15% after Oppenheimer upgraded its rating to “outperform.” This positive outlook is based on expectations that the Covid vaccine manufacturer could introduce up to five new products to the market by 2026.
- Challenges Faced by Moderna in 2023: Despite the recent stock boost, Moderna faced a challenging year in 2023, primarily linked to the decline in demand for its Covid vaccine. The company’s stock plummeted nearly 45% as its commercial success has been closely tied to the Covid shot, and the global demand for Covid-related products decreased.
- Optimistic Outlook for Moderna’s Future: Oppenheimer analyst Hartaj Singh expressed optimism about Moderna’s future, acknowledging a potential dip in Covid vaccine sales in 2024 due to factors like vaccine fatigue. However, the firm expects a resurgence in sales from 2025 onward as education about Covid increases. Singh highlighted Moderna’s pipeline potential, pointing to possible launches of new products in the next 12 to 18 months, including experimental vaccines for respiratory syncytial virus (RSV), the flu, and a personalized cancer vaccine. Additionally, Moderna’s goal of launching up to 15 products in the next five years aligns with its strategic vision outlined in September. The company expects sales growth in 2025, aiming to break even in 2026, as per its third-quarter earnings release in November.
Moderna’s stock experienced a notable surge of over 15% after an upgrade by Oppenheimer, which shifted its rating to “outperform.” Despite a challenging 2023, marked by a nearly 45% decline in Moderna’s shares due to waning demand for its Covid vaccine, the upgrade was prompted by optimistic projections. The analysis anticipates that Moderna could introduce five products to the market by 2026. While acknowledging a potential dip in Covid vaccine sales in 2024 due to factors like vaccine fatigue, Oppenheimer foresees a resurgence in 2025 and beyond. Analyst Hartaj Singh expressed confidence in Moderna’s pipeline, pointing to upcoming launches within the next 12 to 18 months that could contribute to increased sales in 2025. Notable developments include the potential approval of an experimental vaccine targeting respiratory syncytial virus (RSV) for older adults, with a decision expected from the FDA in April. Additionally, the experimental flu vaccine and a personalized cancer vaccine are poised for potential FDA approval in 2024 or 2025. Moderna’s collaboration with Merck on a cancer treatment using Keytruda is currently under study. The company also reiterated its expectation of sales growth in 2025, emphasizing the RSV vaccine and the possible approval of a combination shot for Covid and flu by 2025. Despite anticipating a revenue drop to $4 billion in 2024, Moderna projects a rebound in 2025 and aims to break even in 2026. The company’s broader strategy involves launching up to 15 products in the next five years, aligning with its ambitious goals outlined in a September announcement.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/02/moderna-stock-jumps-after-oppenheimer-upgrade-on-pipeline-potential.html
