FILE PHOTO: A sign indicating the headquarters of Modern Therapeutics in Cambridge, Massachusetts, USA, on May 18, 2020. Reuters / Brian Snyder / FILE PHOTO
September 17, 2021
NEW YORK (Reuters) – Discussions about the need for COVID-19 booster shots have blew the outlook for high-end shares of Moderna Inc., as US biotechnology companies’ share price jumped 360% this year, while the S&P 500 has increased.
A panel of US Food and Drug Administration expert external advisors on Friday recommended https://www.reuters.com/world/us/us-covid-19-booster-debate-moves-fda-vaccine-advisory-voting to rejected does.
A booster application for all Americans over the age of 16 was brought to a vaccine developed by Pfizer in collaboration with German partner BioNTech SE. Moderna, where the vaccine is based on similar messenger RNA (mRNA) technology, was implemented earlier this month — BOOSTER-US-FDA-2021-09-01 Allows the use of booster doses.
Moderna has benefited from being one of the leading coronavirus vaccines, but its share has declined 11% since hitting a high of $484.47 in early August. According to analysts, one of the factors behind the stagnation in the rally is the uncertain outlook for additional booster COVID-19 shots in addition to the first two-dose regimen.
Jeff Jonas, portfolio manager at Gabelli Funds, said: “Now I think it’s a little uncertain if there’s additional demand.”
US government announces plan to give booster shots https://www.reuters.com/world/us/us-start-offering-covid-19-vaccine-booster-doses-September-2021- 08-18 Immediately week later. But experts question whether there is evidence to support such a plan.
Leading scientists, including two officials who left the US Food and Drug Administration this week, said in an influential medical journal that no additional booster shots were needed https://www.reuters.com/world/us/covid-19-vaccine- boosters -not widely needed by general public-top-fda-who-scientific-say-2021-09-13.
In a memo earlier this week, SVB Leerink analysts estimated that the booster market could add an additional $3–4 billion to US potential revenue from existing vaccines.
“The consensus estimate already considers the company’s significant booster revenue,” said the Leerink analyst. “Specifically, based on the recommended population width and booster interval, this will impact Moderna’s share price. I’ll give it to you “
After an index fund manager added to the S&P 500, it was forced to buy the stock, raising concerns about a resurgence of COVID-19 cases due to the spread of the virus, which has already led to Moderna’s shares. Strong growth. this summer. Down. Delta version of the virus.
Shares have fluctuated since they were included in the index in mid-July, and Moderna shares had the S&P 500’s biggest daily rise or fall in 10 trading days since joining the index during that period. Is. That’s a quarter of all sessions.
It looks like analysts are paying attention to inventory as a whole, despite developing other products, such as a vaccine that combines a booster dose for COVID-19 with experimental flu shots. http://www.reuters.com/business/healthcare-Pharmaceuticals/Moderna-Developing-single-dose-combination-vaccine-covid-19-flu-2021-09-09.
Moderna shares have an average target of $391 among 12 analysts, according to Refinitiv, which is 11% higher than Thursday’s closing price of $440.65.
According to Refinitiv Datastream, Moderna’s price-earnings ratio will trade at 15.8 using the forecast for the next 12 months. This is more than 11.4 times the P/E of the entire S&P500 biotechnology company, but cheaper than 17.7 times that of the S&P500 healthcare sector.
However, according to Hartaj Singh, a biotechnology analyst at Oppenheimer, Moderna is trading at an estimate of about 15 times its sales in five years. This is the historic peak of a large biotechnology stock, including a flagship product. Shin “neutralized” the stock in August.
“I don’t think the stock won’t go down until there’s some obvious bad news,” Shin said. “But I think there’s already good news in stock valuations.”
(Reporting by Lewis Kraskoff; Editing by Ira Iosbashvili and Bill Berkrot)
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