This company made headlines with its coronavirus vaccine.
This company made headlines with its coronavirus vaccine.
Moderna (MRNA +6.70%) leaped into the spotlight during the early days of the pandemic, and that was because the up-and-coming biotech player had a solution to the problem: a vaccine. The company became one of the first to launch a coronavirus vaccine, rivaling pharma giants such as Pfizer, and generated blockbuster revenue from the product. At the vaccine's peak in 2022, it brought in more than $18 billion in revenue and made Moderna profitable.
Recent years have been difficult, however, as demand for the vaccine declined. The company saw revenue drop, swung to a loss, and its stock price, once soaring in the triple digits, followed.
But Moderna may be entering a new period of growth and success right now. Over the past few years, the company has taken steps to address its problems and has focused its pipeline on a particularly high-growth therapeutics market: oncology. Importantly, investors have recognized Moderna's potential, helping the stock soar more than 600% this year.
Forget COVID: Moderna is turning into a cancer company, and Wall Street is taking notice. Let's find out more.
Moderna's expertise in mRNA
As mentioned, Moderna's initial successes came with the coronavirus vaccine. There, the company could demonstrate its messenger RNA technology and its strength in designing safe and efficacious vaccines. Moderna uses mRNA to teach the body to make proteins that will defend it from or treat disease. The approval of the coronavirus vaccine was a big moment, as it served as a vote of confidence in Moderna's technology.
Since that time, Moderna has maintained its respiratory vaccine work, winning additional approvals such as nods for a respiratory syncytial virus (RSV) vaccine and a flu vaccine. But where the company may stand out in the future is in another area, and that's oncology.
Moderna is testing its personalized cancer vaccine, intismeran autogene, in 10 clinical trials, and several of these have reached late-stage testing. Just recently, the biotech announced positive phase 3 results for the candidate, paired with Merck's Keytruda, for the treatment of melanoma. The combo treatment met recurrence-free survival goals, and the companies say they will now pursue talks with regulators regarding the filing of submissions.
Moderna's vaccine is personalized, so it isn't an off-the-shelf product that can be mass-produced in advance. This means it's likely to involve a longer, more complex rollout if approved, as well as higher manufacturing costs. All of this suggests that even in the best scenario, a product approval won't result in a speedy ramp-up and overnight revenue gains.
Averytin News Financial update.