FILE PHOTO: A healthcare worker receives a dose of the Moderna coronavirus disease (COVID-19) vaccine at Rady Children's Hospital in San Diego, California, U.S., December 22, 2020. REUTERS/Bing Guan/File Photo
NEW YORK: The pandemic officially ended months ago, allowing a weary public to get back to normal living. That was great news for large swaths of the economy.
But not all of it. Moderna Inc, which shot to fame when it became one the first companies to bring the world Covid-19 vaccines, has been searching for its next big thing ever since.
Investors have bailed in droves as waning demand for shots and treatments for the virus drove an eight-day losing streak in the stock.
Moderna has erased US$6.8bil in market value last week after rival shotmaker Pfizer Inc slashed its profit outlook late last Friday, sounding the alarm on dwindling demand for its Covid shots and pills.
Moderna’s stock closed at the lowest since November 2020 – that’s when the company was still racing to get its Covid jab authorised for US use.
“Covid-19 vaccine revenue concerns should be at all time high right now,” said Hartaj Singh, an analyst at Oppenheimer.
“A good third-quarter print should allay some of these fears. And good guidance early next year on 2024 potential revenues could get the stock’s mojo back.”
As Moderna struggles to position itself beyond its blockbuster Spikevax vaccine, Wall Street has been divided on its fate with half of the 24 analysts tracked by Bloomberg rating it a “buy”.
The other side, including Singh who rates the stock market perform, is less enthusiastic with 10 analysts saying to hold the stock and two recommending selling.
The vaccine maker is striving to prove its messenger-RNA technology will work against other diseases, including cancer. A flu and Covid combo shot as well as an RSV vaccine are also in the works.
Moderna’s stock has plunged roughly 83% from its August 2021 peak when its market capitalisation was nearly US$200bil.
Shares have wilted as optimism waned for future Covid sales and investors pivoted to stocks related to the new class of weight-loss drugs – known as GLP-1s.
Moderna – which once drew comparisons to Tesla Inc – is one of the worst-performing S&P 500 names so far this year.
Following Pfizer’s update, Moderna management has since affirmed its guidance for vaccine sales for the full year. — Bloomberg
