-written by Kelly-
Take a look at the market movers in the US market, the price of Moderna ($MRNA) has been dropping recently. This prompts us to ask the question, “is it still worth it to buy?”
Here are a few things to consider. First of all, most of Moderna’s profit growth comes from the coronavirus vaccines. Even though it seems like we are returning back to the pre-Covid era, the truth is that the latest surge was considerably undercounted. As fall is coming, there’s a high risk that as people will stay indoors longer, infection will be brought back. According to the Biden administration’s prediction, 100 million Americans, which nearly one third of the country’s population, could get COVID-19 infections in the coming fall and winter.
Secondly, it does seem like Americans have already move on from COVID-19, as the data show:
- 83% support the federally fund at-home tests and free access to vaccines and treatment while 65% also support ending government mandated COVID restrictions.
- 87% of Americans support the federal government providing free COVID-19 vaccines and treatments, despite different health insurance status.
- 81% of Americans are satisfied with the vaccine’s protection, and a similar level of them are happy with the vaccine not having notable long-term side effects.
- 74% of the vaccinated population express the willingness to get an annual COVID-19 booster shot if recommended or if it provides better protection from new variants.
Some might argue that Biden stated that the pandemic was over. Yet, the fact that the White House requested additional COVID-19 funds and the follow-up response to the president’s speech from the leading disease expert Anthony Fauci, “what he really meant is that the very severe stage of the pandemic of having … 3,000 deaths a day – that stage is no longer present, but that ‘people should not be cavalier that we’re out of the woods.’” mean it’s not over yet.
Moreover, from the revenue Moderna made during the COVIID-19 pandemic, they have three non-coronavirus investigational vaccines in phase 3 trials, including cytomegalovirus, respiratory syncytial virus (RSV), and flu. If the trials go well, there’s a big potential in the growth of the Moderna stock.
In conclusion, no doubt Moderna’s revenue from coronavirus vaccine seem to be stagnating, or even decreasing. Yet, the vaccine revenue would very likely be recurrent, meaning that it’s not just here today and gone tomorrow because of the pandemic, and with the other in-trial non-coronavirus vaccines, we can expect to see future growth in Moderna. Again, do your own DD before making any investment decisions.