MRNA’s stock price continues to lag behind most biotechnology companies. That is mainly because of its slowdown in vaccine sales. Moreover, insiders have sold mrna stock more significantly than they bought. If that continues, man’s fourth-quarter earnings could be pushed to next year.
Table of Contents
Moderna’s mRNA technology
Using the company’s mRNA technology, Moderna is developing medicines for various diseases, including infectious illnesses. In addition, the company has established several strategic partnerships with leading biopharmaceutical companies and government-sponsored organizations to validate its mRNA platform.
The platform is designed to be flexible and to allow the company to develop different medicines. The company’s vaccines and other therapies are being developed for HIV, malaria, tuberculosis, and neglected tropical diseases. In addition, the company is also focusing on cardiovascular diseases and immuno-oncology.
The company has invested over $100 million into its mRNA technology, which is already used in several vaccines. The company plans to build a state-of-the-art mRNA facility in Africa. This facility will enable commercial production of its vaccines at scale. This will allow the company to develop its products and study their efficacy in a clinical setting. In addition, the facility must include drug substance manufacturing and fills/finish capabilities.
The company plans to use the upfront payment to fund the first phase of a human proof of concept studies. The goal of these trials is to neutralize the virus before it attacks white blood cells.
mRNA-4157 vaccine sales could be pushed into next year
Approximately 38 million people worldwide are infected with HIV and AIDS. There are 690,000 deaths annually from complications related to this virus. A new vaccine has been developed to help fight this disease. This type of vaccine is called the mRNA vaccine. These vaccines can be produced quickly and efficiently.
Cancer researchers can use an mRNA vaccine to generate an effective immune response against a tumor by introducing synthetic mRNA into cancer. These types of vaccines have several benefits over traditional DNA vaccines. One advantage is that mRNA vaccines have no risk of insertion into the genome. Another advantage is that they are safe and effective in clinical trials.
MRNA vaccines are ideal for the preparation of neoantigen-based immunotherapies. Neoantigens are molecules thought to be highly effective in inducing anti-tumor immune responses. These proteins are produced in mammalian cells by the expression of the closest resemblance to the natural tumor antigens. These protein expressions are then delivered to the surface of the tumor through MHC molecules.
Insiders sold mrna stock in more significant numbers than they bought
Generally, insiders have been unresponsive primarily to the recent stock market turmoil. This starkly contrasted with the early 2020 market crash when investors were more than happy to hand over their hard-earned cash. A flurry of transactions can be seen as evidence that investors were willing to take the risk. The best ones were rewarded with some money in the bank.
In short, Moderna’s (NASDAQ: MRNA) stock has been on a roller coaster ride since the pandemic o’clock started a few months back. The epochal event has resulted in the cancellation of numerous supply contracts with governments around the globe. In short, there is a shortage of good stuff in the foreseeable future. So it is no wonder the company will see the big stick shortly.
Although it’s been a while, the company did get the nod in the vaccine category, despite the hype surrounding the pending competition from competitors such as Merck, KGaA, and Pfizer.
mRNA stock’s performance in the third quarter
Despite a drop in earnings, Moderna MRNA’s performance in the third quarter was better than expected. The stock jumped more than 35% during the quarter as the company launched a bivalent vaccine to protect children against the flu. The company also announced a collaboration with Merck (MRK) to test a vaccine-based drug to treat melanoma. It also reaffirmed its guidance for the rest of the year.
However, sales fell about 35% during the quarter. This primarily came from a drop in COVID-19 vaccine sales. In addition, Moderna delayed the delivery of the vaccine’s bivalent doses because of supply issues. As a result, the company expects revenue from advanced purchase agreements between $18-$19 billion. This was down from a previous forecast of almost $21 billion. It also deferred the delivery of $2-$3 billion in goods in 2019.
The company’s shares were down about 2% as investors weighed the company’s financials and post-Covid efforts. Analyst Michael Cyprys said the recent decline in the company’s value makes the current entry point attractive. However, he also noted that the accelerating U.S. healthcare business and adverse currency movements largely drive the company’s guidance.