Forget Elon Musk vs. Twitter, there’s new beef on Wall Street.
Back in 2020, as Covid-19 brought the world to a virtual standstill, pharma companies were focused on the same goal – ending the coronavirus pandemic. Now the virus has been tamed, it’s knives out between the vaccine giants. Or more specifically, one giant is accusing the other of making unlawful use of its tech.
On Friday, Moderna (MRNA) disclosed that it had filed patent infringement lawsuits against Pfizer and BioNTech in the United States and Germany, alleging the pair copied its messenger RNA technology in order to create its Covid-19 vaccine Comirnaty.
According to the lawsuit, Pfizer/BioNTech’s offering violates patents Moderna filed between 2010 and 2016 that deal with messenger RNA (mRNA) technology. That tech instructs the body to produce a single spike protein, which activates the immune system.
The vaccine maker claims that during the pandemic it decided not to enforce its patents. The company updated its promise in March 2022, stating that it wouldn’t engage in patent litigation in 92 low- and middle-income nations but that does not apply to rich countries where it expects the patents to be licensed.
So, what are the possible outcomes? Brookline Capital analyst Leah R. Cann thinks there are a couple of likely ones. Either Moderna will reach a commercial agreement with Pfizer and BioNTech or there will be a protracted court battle that could “ultimately strengthen Moderna’s patent portfolio.”
Cann sees the former as the more likely scenario, but either way, the analyst thinks the real benefit to Moderna lies elsewhere.
“We believe the emerging real-world data demonstrating Moderna’s mRNA-1273 (Spikevax) superiority to Pfizer/BioNTech’s BNT162b2 (Comirnaty) will have more financial impact to Moderna than a potential commercial agreement with Pfizer and BioNTech for patent use,” Cann said. “However, establishing patent rights will be a de-risking event for the Moderna platform.”
There’s no doubt, Cann is a fully-fledged MRNA bull. The analyst sticks with a Buy rating backed by a $506 price target, suggesting shares will appreciate by a huge 265% over the next 12 months. (To watch Cann’s track record, click here)
Not all on Wall Street are as confident in the Moderna story; the stock ekes out a Moderate Buy consensus rating, based on 4 Buys, 5 Holds and 1 Sell. That said, boosted by Cann’s exuberant outlook, the $235.88 average price target makes room for 70 growth in the year ahead. (See Moderna stock forecast on TipRanks)
To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
