In a favorable development for biotechnology firm Moderna (NASDAQ:MRNA), the company’s preliminary clinical trial data confirmed that its updated COVID-19 vaccine effectively targets the EG.5 or Eris strain, which has been recently classified as a variant of interest by the World Health Organization (WHO). Further, Eris is currently the dominant variant in the U.S., per the Centers for Disease Control and Prevention (CDC).
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The Eris variant is similar to the XBB.1.5 subvariant and is a sub-lineage of the still-dominant Omicron variant, which emerged in late 2021.
More on Moderna’s Updated Vaccine
Aside from Eris, Moderna said that its updated COVID-19 vaccine for the fall 2023 vaccination season showed a significant boost in neutralizing antibodies against the FL.1.5.1 or Fornax variant as well. The Fornax variant is beginning to spread in certain parts of the U.S. According to the CDC, Eris and Fornax accounted for 17.3% and 8.6%, respectively, of all cases nationwide earlier this month.
In June 2023, Moderna presented the clinical trial data confirming that its updated COVID-19 vaccine showed effectiveness in targeting the key circulating XBB strains. Rivals Novavax (NASDAQ:NVAX) as well as Pfizer (NYSE:PFE) and its German partner BioNTech SE (NASDAQ:BNTX) have created versions of their COVID-19 vaccines aimed at the XBB.1.5 subvariant.
On Thursday, Pfizer announced that its updated COVID-19 vaccine, which is being tested against emerging variants, displayed neutralizing activity against the Eris subvariant in a study conducted on mice.
Meanwhile, Moderna said that its updated COVID-19 vaccine will be ready for fall vaccination with sufficient global supply, pending authorizations from the U.S. Food and Drug Administration (FDA), the European Medicines Agency (EMA), and other regulators worldwide.
On Thursday, shares of Moderna, Pfizer, BioNTech, and Novavax were up 7.4%, 2.9%, 4.9%, and 3.4%, respectively, on news of rising COVID-19 cases across the globe.
What is the Target Price for Moderna Stock?
Wall Street is sidelined on Moderna stock, with a Hold consensus rating based on five Buys, five Holds, and two Sells. The average price target of $162.19 implies nearly 53% upside potential. Shares have plunged 41% year-to-date due to the drop in demand for MRNA’s COVID-19 vaccines.
Earlier this month, TD Cowen analyst Tyler Van Buren downgraded Moderna from Buy to Hold and lowered his price target to $125 from $145. While the analyst believes in the applicability of the mRNA platform, he thinks that near-term catalysts remain light. Buren contends that it’s prudent to wait for more clarity on the COVID tailwind from the upcoming fall and winter seasons.
