During last year, Moderna stocks surpassed wider market and experienced record growth of 509% (to the date of 26th August 2021). The value exceeded total returns of the S&P 500 index reaching 28% (to the date of 26th August 2021). The pharmaceutical company recorded success last performed by Tesla Inc.
During last year, Moderna stocks surpassed wider market and experienced record growth of 509%[1] (to the date of 26th August 2021). The value exceeded total returns of the S&P 500 index reaching 28%[2] (to the date of 26th August 2021). The pharmaceutical company recorded success last performed by Tesla Inc.
The S&P 500 index represents one of the most important stock indices globally. It contains 500 largest publicly traded companies in the U.S. weighted by market share[3].
Good news keep on coming for Moderna stocks. Firstly, the vaccine shows high efficacy up to six months after second dose, while efficacy of vaccine manufactured by Pfizer Inc and BioNTech wanes by an average of six percentage points every two months. About six months after a second dose, the efficacy slipped to 84%, while Moderna maintains its standard.
“Our COVID-19 vaccine is showing durable efficacy of 93% through six months, yet the Delta variant is a significant new threat so we must remain vigilant,” said Stéphane Bancel, Chief Executive Officer of Moderna. The company has reported that a third dose may be needed to prolong the body's immune response and provide protecting even against the Delta variant.
The company has been testing different types of COVID-19 vaccine in order to provide effective protection against specific coronavirus variants. AFP reported that these vaccines have demonstrated high antibody responses, yet no further information is clear for now.
Thanks to the vaccine, Moderna reported first-quarter net income in 2021[4]. While the pharma company reached net income of $1.22 billion in first quarter, it reported a loss of $124 million in the same period a year earlier. The drop could have been caused by high research and development expenses, what later positively impacted economic results.
Similarly, Moderna reported high revenues of $1.9 billion compared to $8 million in the same period last year, while vaccine revenues alone reached $ 1.7 billion. Nevertheless, the results fell short of analysts' estimates, who had predicted revenues worth $2 billion.
The company reported good economic results and higher than expected profit even in second quarter.
Based on the Ozios analysis, we may expect that Moderna (as well as other pharmaceutical companies developing COVID-19 vaccines) could report solid profits even in the near future. The company's sales could grow thanks to the third shot of COVID-19 vaccines for people with compromised immune systems[5]. The dose has been approved by the US Food and Drug Administration (FDA) few days ago and Germany, Chile and Israel have approved its application.
On the other hand, competition in the field is growing constantly, and some new companies may enter the market in the long run. A slight correction of sales of pharmaceutical companies providing COVID-19 vaccine may come along with them.
[1] https://www.investing.com/equities/moderna
[2] https://www.investing.com/indices/us-spx-500
[3] https://cs.wikipedia.org/wiki/S%26P_500
[4] https://apnews.com/article/earnings-business-2727f3c1ad030ee834d8ed9292b0256e
[5] https://www.reuters.com/world/middle-east/us-fda-authorizes-covid-19-vaccine-boosters-immunocompromised-2021-08-13/