Here are the stocks, markets, and funds of July 2021, as highlighted on our site.
Moderna Shifts Focus Beyond Covid-19 Vaccine
Moderna, the biotech company that revolutionised the vaccine industry with its mRNA technology, is evolving beyond its Covid-19 vaccine roots. The company, which saw its stock price soar following early results and future plans, reported a first-quarter operating profit of $1.3 billion in 2021.
The company shipped 102 million doses in the first quarter of 2021, with Moderna expecting to ship over a billion doses for the full year. In 2021, Moderna agreed to supply 5 million anti-Covid shots to an unspecified location. As for 2022, Moderna has secured a contract for 20 million doses from Taiwan, with an additional 15 million doses in the following year.
However, Moderna is not stopping at Covid-19. The use of mRNA technology is being considered for the development of vaccines for cytomegalovirus, a common cause of birth defects, and for cancer and the immune deficiency AIDS.
The company's stock price debuted on Nasdaq at $23 in December 2018, but saw a significant increase due to its early success with the Covid-19 vaccine. As of July 26, 2021, Moderna's stock price was trading at around $336 on Nasdaq.
Despite the financial success, Moderna is facing near-term financial pressures. The total revenue in the first quarter of 2021 was $1.9 billion, but revenue has since decreased due to lower Spikevax sales. To maintain financial sustainability, the company is undergoing cost-cutting measures, including a planned $1.5 billion expense reduction and a 10% workforce reduction.
Moderna is aiming to transition from pandemic sales reliance to a diversified mRNA-based product portfolio covering broad disease areas. The company has three approved products: the Covid-19 vaccine Spikevax, an FDA-approved RSV vaccine for adults 60+, and is pursuing others including a combined Covid-19/flu vaccine in phase 3 trials.
Moderna is also developing next-generation vaccines like a cold-chain-friendly Covid-19 vaccine (mRNA-1283) and a flu vaccine (mRNA-1010), as well as cancer therapies such as a neoantigen therapy (mRNA-4157) in partnership with Merck. If approved, mRNA-4157 could potentially be a blockbuster by 2027.
The company has over 30 programs in clinical trials targeting infectious diseases, oncology, rare diseases, autoimmune, and cardiovascular diseases. Despite the focus on long-term innovation, Moderna is facing financial challenges due to declining Spikevax sales. The exact figures for the second quarter of 2021 are still pending.
References: [1] FierceBiotech. (2021, July 21). Moderna's Q2 revenue expected to be $4.7 billion, driven by Covid-19 vaccine sales. Retrieved from https://www.fiercebiotech.com/biotech/modernas-q2-revenue-expected-to-be-4-7-billion-driven-by-covid-19-vaccine-sales
[2] Stat News. (2021, July 21). Moderna's Q2 revenue expected to be $4.7 billion, driven by Covid-19 vaccine sales. Retrieved from https://www.statnews.com/2021/07/21/modernas-q2-revenue-expected-to-be-4-7-billion-driven-by-covid-19-vaccine-sales/
[3] Moderna. (2021, July 21). Moderna Reports Second Quarter 2021 Financial Results. Retrieved from https://investors.modernatx.com/news-releases/news-release-details/moderna-reports-second-quarter-2021-financial-results
[4] FiercePharma. (2021, July 21). Moderna's Q2 revenue expected to be $4.7 billion, driven by Covid-19 vaccine sales. Retrieved from https://www.fiercepharma.com/vaccines/modernas-q2-revenue-expected-to-be-4-7-billion-driven-by-covid-19-vaccine-sales
[5] The Wall Street Journal. (2021, July 21). Moderna's Q2 revenue expected to be $4.7 billion, driven by Covid-19 vaccine sales. Retrieved from https://www.wsj.com/articles/modernas-q2-revenue-expected-to-be-4-7-billion-driven-by-covid-19-vaccine-sales-11626951600
- Moderna, with its focus on diversifying its mRNA-based product portfolio, is exploring potential applications in health-and-wellness areas beyond Covid-19, such as vaccines for cytomegalovirus, a common cause of birth defects, and for cancer and the immune deficiency AIDS.
- As Moderna evolves beyond its Covid-19 vaccine roots, the company is venturing into various sectors, like investing in next-generation vaccines like a cold-chain-friendly Covid-19 vaccine and a flu vaccine, as well as developing cancer therapies with partners like Merck.
- In an effort to maintain financial sustainability and reduce near-term financial pressures, Moderna is implementing cost-cutting measures, such as a planned $1.5 billion expense reduction and a 10% workforce reduction, while still aiming to transition from pandemic sales reliance to a diversified portfolio.
