When Moderna (NASDAQ:MRNA) posted quarterly results and lowered its revenue forecast, the Covid-19 vaccine supplier lost its status as a fast-growing biotech. It now faces multiple headwinds.
AstraZeneca (NASDAQ:AZN), which said it will start earning profits from its vaccine, fell in sympathy.
Moderna applied for approval to vaccinate children. Parents have a widely unpopular opinion on vaccinating children for good reason. Children need to have exposure to diseases as they develop their immune systems. Injecting a COVID vaccine has unknown long-term effects.
The third booster shot is a potential revenue growth generator for Moderna. Yet it faces stiff competition from BioNTech (NASDAQ:BNTX). Novavax (NASDAQ:NVAX) is also on the verge of obtaining approval for its vaccine. If its vaccine provides higher efficacy, people will choose Novavax over Moderna. Novavax is also developing a combo Influenza and COVID-19 vaccine. This convenience may hurt future Moderna vaccine sales.
AstraZeneca broke below its uptrend after posting Q3 results. It earned $1.08 a share, as revenue grew by 50% Y/Y to $9.87 billion. Without the COVID-19 vaccine, revenue grew by 32% to $8.816 billion. AZN’s modest vaccine sales forecast is still strong. It expects vaccine sales to grow by the low-twenties percentage in 2021. EPS will be $5.05 to $5.40.
AZN’s stock dip is excessive. While Moderna is a stock to watch, AstraZeneca has a good buying price from here.
