KEY POINTS

  • As the world begins to emerge from the COVID-19 pandemic, Moderna is in a position to benefit from higher prices for its vaccines and booster shots.
  • More treatments for cancer and Ebola could help the company sustain growth in the future.

What’s going on with Moderna stock

Moderna shares popped 18% last week following data from S&P Global Market Intelligence. These encouraging results were due to several potential sales and profit boosters that could come about shortly.

Why we care 

Moderna (NASDAQ:MRNA) came into the week with high hopes after Pfizer‘s (NYSE:PFE) plans to raise next year’s COVID-19 vaccine price became public. If all goes according to plan, buyers will be paying $130 per shot; this is four times more than what the U.S. government pays for each dose, which s currently at $30.50.

The news allowed investors to get a more accurate idea of how large the commercial market might be for the vaccine. In 2023, it’s projected that the industry will go from its current government-funded model to one where health insurance and patients cover costs.

Pfizer’s proposed prices were significantly higher than Wall Street projections. Therefore, analysts raised their predictions for what Moderna could charge for its vaccine. Consequently, they adjusted their revenue forecasts accordingly.

What now

Moderna’s coronavirus vaccines and booster shots are just the beginning. The company has a promising pipeline of drug candidates targeting various diseases. On Tuesday, Morgan Stanley (NYSE:MS) provided a favorable view of Moderna’s upcoming assessment of a phase 2 study. This pending study is for its personalized cancer vaccine as an adjuvant treatment for patients with high-risk melanoma. This improvement means that the company is one step closer to developing a more effective cancer treatment option. Harrison thinks that Merck‘s (NYSE:MRK) recent choice to work together on developing and selling the drug means that the results will be good.

On Wednesday, Bloomberg reported that Moderna was close to signing a deal with the government. The U.S. Department of Defense wants Moderna to develop mRNA vaccines for Ebola and other biological threats. This is part of the government’s efforts to protect against current and future infectious disease outbreaks.

If these reports are accurate, Moderna’s share price will increase in the future because of the positive clinical trial results and partnership.

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