Moderna Inc (NASDAQ:MRNA) stock fell 0.51% (As on June 27, 1:05:04 AM UTC-4, Source: Google Finance) after UBS upgraded the company to Buy from Neutral with a price target of $191, down from $221. The firm acknowledges the uncertainty around the endemic COVID market and Moderna’s 2023 revenue, but says the stock’s pullback has begun to reflect the significant risk to its COVID vaccine revenues but not its pipeline beyond COVID. The firm noted potential upside from its next generation of mRNA vaccines, including Respiratory Syncytial Virus (RSV) and flu shots, present “a major opportunity” but are not yet priced into MRNA’s valuation.
Meanwhile, adding an experimental mRNA-based vaccine from Moderna Inc and Merck & Co reduced the risk that the most deadly skin cancer would spread by 65% over treatment with an immunotherapy alone in a mid-stage trial. With this and earlier data, Moderna is considering seeking faster approval from regulators for the treatment, the company told investors after having presented the results at the American Society of Clinical Oncology meeting in Chicago.
The data followed earlier promising data from the trial showing the customized mRNA vaccine given in combination with Merck’s Keytruda cut the risk of death or recurrence of melanoma by 44% compared with Keytruda alone.
The findings add to a growing body of evidence suggesting that mRNA technology, which rose to prominence during the COVID-19 pandemic, can be used to assemble personalized vaccines that train the immune system to attack the specific type of cancer cells in a patient’s tumors. The Merck/Moderna collaboration is one of several combining powerful drugs that unleash the immune system to target cancers with mRNA vaccine technology.
On the other hand, the company reported a small profit of 19 cents per share instead of an expected loss as it booked more revenue in the first quarter from last year’s deferred orders for its COVID-19 vaccine than had been anticipated. The company did not change its forecast of $5 billion in COVID vaccine sales for the year based on advance purchase agreements. But Moderna said it was in discussions about new contracts with customers in Europe, Japan, and the U.S. that could further boost vaccine revenue.
The company expects to sign commercial contracts for updated COVID vaccine boosters over the next few weeks and into the third quarter. The company continues to expect the U.S. annual COVID-19 market to be 100 million doses.