Moderna skyrocketed to fame during the COVID-19 pandemic, when it was one of two pharmaceutical companies to debut a novel and highly effective mRNA vaccine. But as the pandemic started to wane, many believed that the company was a shooting star that burned out quickly. It is true that Moderna only expects revenue of around $4 billion this year, a far cry from the $18 billion that the company brought in during 2022. But writing off Moderna could be a costly mistake. Here is what analysts are saying.
Why Has Moderna Been Slumping?
Moderna’s slump was not unexpected. Although the COVID-19 virus is still with us, and health officials continue to recommend regular boosters, the pandemic phase has long passed. The vaccine, known as Spikevax, was Moderna’s breakout hit. Today, there simply isn’t anywhere close to the same level of demand.
Why Traders Should Take Notice
However, Moderna’s fortunes are likely to change yet again. The company just received FDA approval for its new mRNA vaccine for respiratory syntactical virus (RSV), a common illness that can turn deadly in older adults. It isn’t the first RSV vaccine to hit the market. But many analysts believe that Moderna’s name recognition, coupled with generally positive feelings about mRNA vaccines among the public, could make it a real contender in the multi-billion dollar market. Importantly, it’s also the first RSV vaccine to ship in a pre-filled syringe, making it an excellent option for community vaccine events and other situations in which time is of the essence.
Additionally, Moderna has a combination COVID-flu vaccine in late-stage trials, which many doctors hope will become the new normal. The company is also in clinical trials for a cytomegalovirus (CMV) vaccine. The virus often causes birth defects, and the vaccine would be first to market. Other projects include vaccines for cancer, Epstein-Barre virus, and even the incredibly common but miserable norovirus.
Pharmaceutical stocks are never risk-free. But Moderna has a well-established reputation for success thanks to its breakout COVID-19 vaccine success, and the company is showing no signs of slowing down. If you’ve been wanting to invest in this arena, Moderna may well be a buy now opportunity.
Lisa Fritscher has no positions in Moderna. Stocks.News has positions in Moderna.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...