Biotech company Moderna Inc. (NASDAQ: MRNA) has seen contradictory trends affecting its stock price. Since the start of the year, the company’s shares have lost more than 50% of their value and were worth $117.13 at the June 13 trading.
Investor attention to Moderna has increased as sales of its COVID-19 vaccine have increased, but demand for the vaccines has gradually declined. For example, at the end of May, Switzerland decided to destroy around 620,000 doses of Moderna vaccines because they were not used before their expiry date.
Moreover, the World Health Organization’s Dose project for developing countries was only able to find recipients for 100 million doses out of a total of 436 million. So over the next several quarters, Moderna’s main revenue stream will no longer contribute to the money it was making just a few months ago, Wall Street analysts believe.
Indeed, from this point of view, the short-term prospects for Moderna do not seem very encouraging. However, the long-term outlook looks better.
First, Moderna will continue to be one of the market leaders in coronavirus vaccines. Additionally, the company recently reported positive clinical trial data for its omicron strain vaccine candidate and said it has a timeline to bring the product to market by the fall when a further spike in cases is expected.
Additionally, Moderna is working on a candidate for a combination coronavirus and flu vaccine. Such a product could appeal to a population that gets the flu shot every year, about 50% of the US population, and in the future, this audience could become a permanent source of income.
Today, Moderna’s portfolio includes 46 programs in various areas, including candidate vaccines against respiratory syncytial virus, cytomegalovirus, and influenza.
It can be assumed that in the end, the company will be able to win not only with the COVID-19 vaccine but also with other vaccines. Although it is not excluded that in the coming months the company will face serious problems.