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Moderna, Roche Join On Covid-19 Test; Needham Cuts Rating To Hold
Corona

Moderna, Roche Join On Covid-19 Test; Needham Cuts Rating To Hold

Roche has partnered with Moderna Inc. to use its anti-SARS-CoV-2 S antibody test in mRNA-1273 vaccine research trials.

According to Roche (GB:0QOK), the Elecsys test facilitates the quantitative measurement of SARS-CoV-2 antibodies, which in turn should help gain insights into the correlation between protection from vaccination and antibody levels. This could play a role in assessing if, or when, an individual needs revaccination, Roche said. The measurement of antibody levels could also be relevant in establishing vaccine efficacy in the prevention of infection and/or the development of severe COVID-19.

Specifically, the antibody test, which was last month granted Emergency Use Authorization (EUA) from the US Food and Drug Administration, is tailored to help establish a correlation between vaccine-induced protection and levels of anti-receptor binding domain (RBD) antibodies.

Moderna’s (MRNA) mRNA-1273 vaccine candidate, which is undergoing late-stage trials, triggers an antibody response specifically to the RBD of the SARS-CoV-2 spike protein. The vaccine, which is awaiting a decision on EUA approval by the FDA, has demonstrated efficacy of 94.1% against COVID-19.

“Roche values the collaboration with Moderna, which has already included the successful use of our qualitative Elecsys Anti-SARS-CoV-2 test, targeting the nucleocapsid protein, in an earlier part of the studies,” said Roche Diagnostics CEO Schinecker. “We are pleased to see that our quantitative Elecsys SARS-CoV-2 S test, which targets the spike protein, is now also being used as part of the Moderna vaccine trials, which could ultimately help to end this pandemic.”

Needham analyst Alan Carr applauded the progress Moderna has made regarding the validation of its mRNA platform, driven particularly by development of its COVID-19 vaccine mRNA-1273.

However, Carr downgraded MRNA to Hold from Buy and removed his $110 price target as he argues that the stock is now fully valued following this year’s stellar 767% run. (See MRNA stock analysis on TipRanks).

“The stock may react favorably to EUA issuance, but we do not believe it will justify a meaningfully higher price target,” Carr commented in a note to investors. “We await competitor vaccine updates and additional data from other Moderna programs, which may support a higher valuation.” 

Meanwhile, the rest of the Street still has a Moderate Buy analyst consensus on the stock’s outlook. Looking ahead, the average price target stands at $126.69, indicating 25% downside potential lies ahead.

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