Moderna’s fortunes could see a turnaround soon. That’s because Moderna’s CEO, Stephane Bancel, said in an interview today that the company is working on a COVID-19 booster that could protect against the omicron variant.
In an interview on CNBC, Bancel said that the booster, which is expected to be ready in the fall, is entering clinical trials soon. It is likely, but not certain, that the booster will contain omicron.
Moderna (MRNA) stock itself sorely needs a boost(er), as MRNA has fallen more than 30% in the past three months. It is still 82% higher than it was a year ago, but investors clearly are not keen on MRNA right now.
Furthermore, the analyst rating consensus on the stock is a Hold, with only seven Buy ratings vs. six Hold and three Sell ratings.
Although Moderna’s revenue has risen sequentially for the past three quarters, it missed earnings in Q3 2021, disappointing investors. Investors and analysts have also been concerned with the company’s high valuation.
The news about Moderna’s potential omicron vaccine could be a game changer for this stock. By mid-morning today, the stock had already risen by 4.5%. If this pharma could indeed stem the wave of omicron infections, MRNA stock stands to benefit.
