Moderna (NASDAQ:MRNA) is an American biotechnology company that is focused on drug discovery and drug development based exclusively on messenger RNA. Biotechnology has been a high performer in the promising healthcare sector over the past decade.
Grand View Research recently projected that the global biotech market would be worth $727 billion by 2025, representing a CAGR of 7.4% over the forecast period.
Shares of Moderna have climbed 99% over the past three months as of close on June 8. The stock is up 202% in 2020 so far. Moderna has gained considerable traction as some analysts have pegged it as a leader in the COVID-19 vaccine race with mRNA-1273. In late May, Moderna commenced stage 2 trials for its coronavirus vaccine. The company says that it aims to start phase 3 trials by July.
In its first quarter report, the company announced that it had been awarded up to $483 million funding from BARDA for accelerated development of mRNA-1273. It also entered a strategic partnership with Lonza Ltd. to manufacture up to one billion doses of mRNA-1273 per year.
Betting on a vaccine race is always risky, even if it appears that Moderna has captured pole position. However, the rewards will likely be even greater than the vaccine sales we witnessed in the wake of the H1N1 pandemic. Moderna is currently trading roughly $20 off its 52-week high.
The next weeks will be crucial in determining the success of mRNA-1273 as the company pushes for phase 3 trials.
