The pandemic phase of Covid is long over. The virus mutated into a less severe strain. The most dominant strain is still a health risk for the elderly and compromised people. But for the vast majority of the world population, people do not need antivirals or vaccines.
When Moderna (MRNA) posted Q4 results, its stock fell from over $175 to close at $139.26. In the quarter, product sales from the Covid vaccine fell by 30% Y/Y to $4.86 billion. It reported lower sales volume and unfavorable comparisons to last year’s high demand.
The company expects Covid vaccines of $5 billion for all of 2023. It expects additional sales from key markets.
Strong Prospects
Investors are ignoring Moderna’s vaccine development on its mRNA platform. It is developing an RSV vaccine. It is investing in Phase 3 manufacturing for personalized cancer vaccines. As a result, it can run many Phase 3 studies concurrently. CEO Stephane Bancel said that Moderna will invest $4.5 billion in research and development.
Cancer has a large addressable market. It is still an unchartered area, in terms of vaccines for prevention. The uncertainty of success in treating this disease will hurt the stock.
Moderna is a long-term success story. For now, watch out for selling pressure.
