Ahead of COVID-19 vaccine data, this analyst remains optimistic



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Joe Biden is now the president-elect, but contrary to a previous statement by Trump, the coronavirus is far from yesterday’s news after the Democrats likely win.

News of the increase in Covid-19 cases may have taken a step back during last week’s election frenzy, but the global fight against taming the pandemic has yet to be won.

But how close are we to reaching the coveted vaccine? The race is still on to be the first to market with a solution as several names have vaccine candidates in advanced studies. Moderna (RNAm) remains one of the pioneers, with its COVID-19 mRNA-1273 vaccine candidate, currently in phase 3.

Following a meeting with Moderna’s head of investor relations, Oppenheimer analyst Hartaj Singh believes the company remains on track to release interim data in the coming weeks.

“A futility analysis will also be conducted at the time, but we think the chances are slim (<5%) of such a negative reading, based on preclinical and clinical data published to date," said Singh.

If the provisional data turns out to be positive, Singh says potential FDA emergency use authorizations (EUA) and ex-US approvals “should come quickly.”

While not surprisingly, the development of mRNA-1273 is currently taking center stage, Moderna is also making progress with other vaccination programs. The company recently announced that it will start developing a vaccine for seasonal flu. The influenza vaccine space is a “fascinating new line of business,” says Singh, with global sales estimated at around $ 4 billion.

Singh notes the “real possibility for an MNA influenza vaccine to be approved in time for the 2022 influenza season,” and sees it as another reason to “stay bullish” on the stock.

“We continue to be impressed with MRNA’s scalable platform and its execution on various pipeline candidates,” the analyst concluded. “We like the big picture of mRNA by 2021, especially as a potentially revenue-generating company from 2021 (with $ 982 million in NOL and $ 471 million in net DTA as of of year 19). Being lucrative could also attract the attention of another category of investors. More importantly, an approval of mRNA-1273 could validate the franchise of prophylactic vaccines in general. “

Singh’s bullish tone is supported by an outperformance rating (i.e. buy) and a price target of $ 108. This figure implies a 40% increase from current levels. (To look at Singh’s track record, click here)

The majority of street analysts support Singh’s appeal. Based on 9 buys and 1 hold and sell each, the stock has a moderate buy consensus rating. At $ 98.20, the average price target suggests a possible rise of ~ 27% over the following months. (See Moderna stock market analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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