On Thursday, TD Cowen maintained its Hold rating on Moderna (NASDAQ:MRNA) shares with a set price target of $75.00. The decision follows the Advisory Committee on Immunization Practices' (ACIP) unanimous vote to endorse a single-lifetime immunization for Respiratory Syncytial Virus (RSV) for adults 75 years and older, as well as at-risk individuals aged 60 to 74. This recommendation updates the previous guidance which called for shared clinical decision-making.
The committee's consensus was reached despite acknowledging that Moderna's RSV vaccine candidate, mRESVIA, showed lower efficacy at approximately 19 months compared to similar vaccines from competitors like GSK and PFE (NYSE:PFE). The factors potentially explaining the lower efficacy rate were considered during the ACIP's evaluation.
The endorsement by ACIP is significant for Moderna as it could influence upcoming procurement decisions. The firm highlighted the advantage of mRESVIA's pre-filled syringe presentation, which is expected to be a key factor for healthcare providers when choosing an RSV vaccine for the upcoming season.
Moderna's stock performance and investor expectations may be impacted by this development, as procurement decisions by healthcare providers could drive demand for mRESVIA. The Hold rating suggests that TD Cowen advises investors to maintain their current position in the stock until further developments unfold.
The price target of $75.00 remains unchanged, indicating that the firm's valuation of Moderna's shares is consistent with the current market conditions and the potential opportunities and challenges the company may face in the near term.
In other recent news, Moderna has been making significant strides with its vaccine portfolio. The company's mRNA-1283 vaccine demonstrated success in its Phase 3 trial, meeting its primary efficacy endpoint.
Argus, Jefferies, and Piper Sandler have maintained positive ratings on Moderna shares, reflecting these developments. The U.S. Food and Drug Administration (FDA) has approved Moderna's mRESVIA (mRNA-1345), an mRNA respiratory syncytial virus (RSV) vaccine for adults aged 60 and over.
Moderna's investigational mRNA-1083 vaccine, designed to target both influenza and COVID-19, achieved its primary endpoints in a Phase 3 trial, outperforming standard flu and COVID-19 vaccines in adults aged 50 and above. The company is also making strides with its updated COVID-19 vaccines, which have shown increased efficacy against new strains.
Lastly, Moderna has reported a notable reduction in recurrence or death in high-risk melanoma patients from their Phase 2b clinical trial in collaboration with Merck. The combination of mRNA-4157 with KEYTRUDA resulted in a significant reduction in risk.
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