If you invested $ 10,000 in shares of coronavirus vaccine maker Modern (NASDAQ: MRNA) last year, the principal would have grown to more than $ 52,000 from January 15th. The company is one of the hottest biotechnologies on the market since its launch, just over two years ago – and with good reason.
After a decade of research and development and more than $ 3 billion in funding, Moderna has achieved a major scientific achievement by empowering the use of messenger RNA (mRNA) technology in vaccines. However, its momentum is far from over. Let us see today why Moderna is a leading player in the coronavirus for the new year.
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An excellent coronavirus vaccine
In clinical trials, Moderna’s vaccine (mRNA-1273) showed 95% efficacy in preventing COVID-19 infections and was effective in preventing severe cases of COVID-19. Based on these positive results, regulatory agencies in more than 30 countries have cleared the vaccine for use.
So far, the company has received $ 2.89 billion in vaccines and expects to earn only $ 11.7 billion this year by selling mRNA-1273. Back in 2019, the company brought in only $ 60.2 million in revenue for the full year.
The company is currently conducting a series of simultaneous clinical trials to expand the use of the vaccine to young children and adolescents, and it is testing a stimulant shot for adults. Modern expects the vaccine to last at least one year. Thereafter, the naturally occurring immune response may require patients to receive further doses. This is likely to enable Moderna to generate annual revenue given the virus’s transmissibility and the need for vaccination in at least 82% of the general population to prevent new outbreaks.
One could argue that Moderna has the most innovative pipeline in the entire industry. The company is investigating four first vaccines for respiratory diseases. One candidate, mRNA-1647, for cytomegalovirus (CMV) immunization, is on his way to Phase 3 trials this year. CMV is a herpes-like virus that is the leading cause of birth defects worldwide. If successful in this investigation, Moderna expects the vaccine to generate between $ 2 billion and $ 5 billion in the highest annual revenue.
The company is also investigating 13 mRNA therapeutic agents that target cancer, rare diseases, cardiovascular diseases and autoimmune diseases. So far, he has more than enough capital to fund such research and development expenditures. The company’s cash and investments amount to $ 5.25 billion, without any debt.
Take-away meals for investors
Given its solid coronavirus vaccine, promising pipeline and strong financial position, I would argue Moderna is a top coronavirus stock for 2021. It is currently trading for 4.8 times the future revenue, which is fairly cheap as the company has ten figures may add to its sales this year.
The company has more than enough manufacturing capacity to keep the delivery of vaccines going. This year, it expects to produce between 600 million and 1 billion doses. By the end of 2022, Moderna expects to increase its annual production rate by 1.3 billion doses. For these reasons, I think it is one of the best biotechnologies to buy for the new year.