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Founded in 2010 and headquartered in Cambridge, Massachusetts, US, Moderna, Inc. is a biotechnology company that develops therapeutics and vaccines based on messenger ribonucleic acid (mRNA) in areas such as infectious diseases, cardiovascular diseases, oncology, as well as rare genetic diseases. The science of mRNA promises to be very transformative in the health space. The mRNA therapies are designed to stimulate your own body to learn and make the proteins needed to attack the disease itself. Moderna was validated during the 2020 coronavirus pandemic when it became one of the first companies to commercially release an approved COVID-19 vaccine.
The Moderna COVID-19 vaccine is the company’s only commercial product, but the company has an impressive pipeline. There are over 30 vaccine and therapy candidates, with over 15 already in the clinical trials phase. Some of its most promising products in advanced stages include an HIV vaccine, a flu vaccine, a COVID + Flu vaccine, a cytomegalovirus (CMV) vaccine, and two cancer vaccines.
As a biotechnology company, Moderna has the perfect mix for a successful future: a hit product currently in the market, an impressive pipeline, and a huge pile of cash at hand. Its cash reserves have been boosted by the huge success of its COVID-19 vaccine, but its impressive pipeline ensures that the company will not just be a one-hit-wonder. Still, investors are rightly worried about the company’s future post- COVID-19. The company has already indicated that it will look to put its windfall into good use. That is, the company is looking to boost its R&D efforts as well as look into dipping into the M&A waters, but with a focus on companies that complement its mRNA works. Still, Moderna already boasts strategic partnerships with various governments, foundations, as well as top companies such as AstraZeneca and Merck.
Moderna, Inc. went public in December 2018, listing on the Nasdaq where its stock trades under the ticker symbol MRNA. The stock is categorised in the Healthcare sector, under the Biotechnology industry.
Moderna Stock History
Moderna stock went public with an IPO price of $23. The company has never implemented any stock splits in its history.
The MRNA stock got off to a stagnated start, with its price firmly below $25 in its first trading year on the bourse. But news of its potential involvement in the development of a COVID-19 vaccine in 2020 rejuvenated the MRNA stock, which started to steadily drift higher. By December 2020, when Moderna was issued an EUA (Emergency Use Authorisation) in the US in relation to its COVID-19 vaccine, the MRNA stock had settled well above the $100 mark. The stock then had a blockbuster year in 2021 as it received authorisations in the UK and the European Union. The MRNA stock continued to sharply edge higher, managing to print an all-time high of just below $500 in August 2021. As the world started to reopen and with the majority of populations in developed nations already vaccinated, investor sentiment on the stock shifted. The stock drifted from its lofty heights, and it trades above $200 as of November 2021.
Moderna is still classified as a start-up with a high ceiling. The company does not pay dividends yet, but with a bright future ahead of it, investors can likely expect to be rewarded with high stock valuations in the future.
How to Trade Moderna Stock
Here are some of the factors to consider when trading MRNA stock:
- Legislative and Taxation Issues – Moderna operates in a delicate industry that is very closely regulated and legislated on. Legislative and taxation issues such as patents, trials, approvals, incentives, and subsidies can significantly impact the company’s bottom line. These issues vary in different jurisdictions around the world, and significant changes can directly influence the direction of the MRNA stock.
- New Product Rollout – As a biotechnology company, Moderna invests heavily in research and development. This means that a new product rollout is very impactful to its business. As witnessed with its successful COVID-19 vaccine, a hit product can massively boost the fortunes of the company. On the flip side, a product that misses can be devastating considering the number of financial resources expended and the time consumed through its development, testing, verification, and approval stages. As well, the stock is also very volatile when headlines of major product development hit the wires. Positive updates tend to lift the stock higher, whereas negative updates can weigh heavily on the MRNA stock.
- Competition – In the lucrative biotechnology space, Moderna faces fierce competition from companies such as Amgen, Gilead Sciences, and Illumina Inc. There is also competition from well-financed and established companies such as Pfizer, AstraZeneca, Novartis, as well as Johnson & Johnson. Competition is based on new research and technologies, new product rollouts, approval by regulatory agencies, as well as customer relationships.
- Periodic Earnings Reports – Moderna’s fiscal year runs from January to December, and the company releases periodic earnings reports to update investors on its business health and performance. Generally, the MRNA stock tends to drift higher when its earnings beat expectations; but the stock will tend to edge lower when earnings miss expectations.
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** Disclaimer –While due research has been undertaken to compile the above content, it remains an informational and educational piece only. None of the content provided constitutes any form of investment advice.