Biotech company Moderna (NASDAQ:MRNA) has announced that its investigational mRNA vaccine (mRNA-1345) for respiratory syncytial virus (RSV) was 83.7% effective in a late-stage trial in preventing at least two symptoms in adults aged 60 and older. MRNA stock was up 6.5% in Tuesday’s extended trading session.
Moderna intends to submit its RSV vaccine candidate for regulatory approval in the first half of 2023. It added that the mRNA-1345 vaccine was 82.4% effective in preventing more severe RSV disease with three or more symptoms. The company provided only top-line results and said that it would submit the complete data for peer-reviewed publication and present it at an upcoming scientific meeting.
Demand for RSV Vaccines
RSV is a highly contagious seasonal respiratory virus and can lead to serious illness in adults and infants. It significantly impacts the health of older individuals with comorbidities. Currently, there are no approved vaccines for preventing RSV. Moderna is competing with Pfizer (NYSE:PFE) and GSK (NYSE:GSK) to get its RSV vaccine approved. Pfizer and GSK filed applications for U.S. regulatory approval in late 2022.
It is worth noting that earlier this month, the U.S. Food and Drug Administration accepted the Biologics License Application for Nirsevimab, an antibody treatment co-developed by Sanofi (NASDAQ:SNY) and AstraZeneca (NASDAQ:AZN), for the prevention of RSV in newborns and infants. This treatment has been approved under accelerated review in the European Union and the U.K.
Moderna rose to fame by developing a COVID-19 vaccine based on its mRNA technology. The company generated billions of dollars from COVID-19 vaccine sales. However, investors are concerned about the waning demand for COVID-19 treatments. If approved, Moderna’s RSV vaccine for adults could considerably boost the company’s revenue. Citing Cowen analyst Tyler Van Buren, Reuters stated that the RSV vaccine market could be worth over $10 billion globally, half of which is estimated to be generated in the U.S.
What is the Forecast for Moderna Stock?
The Street’s Moderate Buy consensus rating for Moderna stock is based on seven Buys and eight Holds. The average MRNA stock price target of $227.58 implies 19.4% upside potential. Shares have advanced 2.2% over the past year.
