Moderna (MRNA) stock jumped 17% on Thursday, fueled by speculation of potential buyout talks amid concerns over declining COVID-related revenues and rising R&D costs. The rally comes ahead of the pharmaceutical company’s Q3 earnings release, scheduled on November 6.
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Buyout Buzz Sparks Investor Interest
According to a report by STAT News, Moderna may be in early-stage discussions with a larger pharmaceutical company regarding a deal of “significant scope.” This could include an acquisition or a major partnership. Even though no deal has been confirmed, talks of a possible buyout has boosted interest in the stock, which has struggled to regain momentum since its pandemic peak.
The company’s intellectual property portfolio, mRNA expertise, and pipeline diversification make it an attractive target, especially for firms looking to expand in infectious disease and personalized medicine.
Importantly, the news follows a recent update on Moderna’s Phase 3 trial of its CMV vaccine, mRNA-1647. The company said it did not meet its primary goal of preventing CMV infection in women who had not been exposed to the virus. As a result, Moderna stopped developing this vaccine for congenital CMV.
Expectations From MRNA’s Q3 Results
Moderna’s Q3 earnings are expected next week. Wall Street is expecting MRNA to report a loss of $2.12 per share, against earnings per share of $0.03 in the same period last year. Meanwhile, analysts project revenues of $879.55 million, down from $1.86 billion in the year-ago quarter.
The company’s performance is expected to be impacted by falling COVID-19 vaccine demand, rising competition in the mRNA space, and increased R&D spending.
What Is the Prediction for MRNA Stock?
Turning to Wall Street, MRNA stock has a Hold consensus rating based on three Buys, 13 Holds, and four Sells assigned in the last three months. At $41.40, the average Moderna stock price target implies a 43.01% upside potential.
