On Thursday, Goldman Sachs reaffirmed its Buy rating on Moderna (NASDAQ:MRNA) stock, keeping the price target at $206.00. Moderna, listed on NASDAQ:MRNA, recently held its fifth Vaccines Day, during which several key updates were shared.
The company announced a development and commercialization agreement with Blackstone (NYSE:BX) Life Sciences, valued at up to $750 million, to further its influenza vaccine program. This partnership is expected to alleviate some of the R&D costs for Moderna, with returns based on commercial milestones and low-single-digit royalties. A regulatory filing for the flu vaccine is anticipated in 2024.
In addition to the Blackstone partnership, Moderna reported positive clinical data from three vaccine candidates that are moving into Phase 3 trials: Epstein-Barr virus, Varicella-Zoster virus, and norovirus.
The total addressable market for these and other vaccines, excluding respiratory vaccines, is estimated by Moderna to be over $25 billion. Details regarding pivotal study designs, which will provide insight into the potential commercial opportunities, are forthcoming.
Moderna also provided information on its next-generation COVID-19 vaccine, which is being designed to be stable in a refrigerator. Furthermore, the company presented data supporting the co-administration of its RSV vaccine with Spikevax, and with an approved flu vaccine, noting no new safety concerns and suggesting that co-administration could lead to increased vaccination rates.
Looking ahead, Goldman Sachs expressed a positive outlook for Moderna's RSV vaccine launch, scheduled for a PDUFA decision on May 12. The pre-filled syringe format of the vaccine is seen as a competitive edge.
The firm is also anticipating interim Phase 3 data on the CMV vaccine by the end of 2024 or later, as well as data from the combined flu and COVID-19 vaccine trials. Overall, Goldman Sachs views the developments as a sign of significant opportunities emerging for Moderna beyond its COVID-19 vaccine, including the individualized neoantigen therapy being developed in partnership with Merck.
InvestingPro Insights
As Moderna continues to advance its diverse vaccine portfolio, real-time data from InvestingPro offers a snapshot of the company's current financial health and market performance. With a market capitalization of $42.34 billion, Moderna shows a significant presence in the biotechnology sector. Despite a challenging period with a revenue decline of -64.45% over the last twelve months as of Q4 2023, the company holds more cash than debt on its balance sheet, an InvestingPro Tip that suggests a strong liquidity position. This financial stability could be crucial as Moderna invests in the development of its flu vaccine in collaboration with Blackstone Life Sciences and prepares for upcoming Phase 3 trials of other vaccine candidates.
InvestingPro Tips also highlight that Moderna's management has been actively buying back shares, a move that can reflect confidence in the company's future and potentially support the stock price. Additionally, while analysts have revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year, Moderna has demonstrated strong returns over the last month with a price total return of 13.45%. These mixed signals underscore the complexity of the biotech industry and the importance of staying informed with current and comprehensive analysis.
For readers looking to delve deeper into Moderna's financials and market predictions, there are additional InvestingPro Tips available, offering further insights into the company's performance and outlook. To enhance your investment research, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro, where you can find a total of 13 InvestingPro Tips for Moderna.
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