Moderna stock holds steady as William Blair reiterates Market Perform rating

Investing.com - William Blair has reiterated its Market Perform rating on Moderna (NASDAQ:MRNA), currently trading at $27.67, following positive Phase III results from the company’s flu vaccine program. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 4.22, though it faces profitability challenges with negative earnings of $8.72 per share over the last twelve months.

The firm highlighted that Moderna’s flu program data represents a positive development for the company’s vaccine franchise, enabling regulatory filings for both the mRNA-1010 and mRNA-1083 vaccines. The data demonstrated superiority over competing flu vaccines in both immunogenicity and vaccine efficacy, which could drive demand for mRNA-1010. InvestingPro analysis suggests the stock is currently undervalued, with 6 analysts recently revising their earnings expectations upward for the upcoming period.

William Blair noted that each component of Moderna’s combination vaccine mRNA-1083 has now achieved positive Phase III data as independent entities, which should be sufficient for a Biologics License Application (BLA) submission and potential regulatory approval. Moderna plans to submit an independent BLA for mRNA-1010.

The firm indicated that prescribing label discussions will likely focus on whether the products will be approved only for older adults or at-risk populations, with additional studies potentially required for approval in other demographics. This represents a greater risk for mRNA-1083, where the COVID-19 component already carries a narrower label.

Despite Moderna’s continued development of effective vaccine assets, William Blair expressed concern that competition and waning vaccine sentiment are negatively impacting the base business, suggesting that development of oncology and rare disease franchises will be necessary for sustained long-term growth beyond vaccines. This aligns with InvestingPro data showing a 38% revenue decline and rapidly depleting cash reserves, though the company maintains a healthy balance sheet with more cash than debt. Discover 8 more exclusive ProTips and comprehensive analysis in the Pro Research Report, available with your subscription.

In other recent news, Moderna has reported positive Phase 3 results for its seasonal influenza vaccine, mRNA-1010, which demonstrated a 26.6% higher efficacy in adults aged 50 and older compared to standard flu vaccines. The study, involving 40,805 participants across 11 countries, showed strong efficacy across various influenza strains, with 29.6% against A/H1N1 and 29.1% against B/Victoria lineages. Moderna plans to present these findings at an upcoming medical conference and engage with regulators on filing submissions. Additionally, the US Food and Drug Administration has granted limited approval to Moderna’s new mRNA COVID-19 vaccine for high-risk populations, with a commitment to closely monitor trial outcomes.

In another development, Health and Human Services Secretary Robert F. Kennedy has reshuffled the Advisory Committee for Immunization Practices (ACIP), replacing all 17 members with eight new appointees. This move aims to bolster public trust and ensure rigorous evaluation of vaccine safety and efficacy. The overhaul of the ACIP has led to a decline in shares of Moderna, Pfizer (NYSE:PFE), and BioNTech (NASDAQ:BNTX), reflecting concerns over potential disruptions in vaccine approvals. Investors are closely watching how these changes might affect vaccine recommendations and the broader landscape of vaccine regulation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.