Leerink Partners analyst Mani Foroohar has maintained their bearish stance on MRNA stock, giving a Sell rating on May 21.
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Mani Foroohar has given his Sell rating due to a combination of factors related to Moderna’s recent strategic decisions and regulatory challenges. The company has voluntarily withdrawn its BLA application for its flu/COVID combo vaccine, mRNA-1083, which introduces uncertainty as it plans to resubmit later in the year. This decision is tied to the need for additional efficacy data from the mRNA-1010 Phase 3 trial, which could impact the timeline and success of the application if the results are not favorable.
Furthermore, there are concerns about the long-term commercial viability of the combo vaccine, which is crucial for Moderna’s profitability in the future. The regulatory landscape remains complex, with uncertainties about the approval framework for the combo vaccine. Additionally, potential costs associated with further Phase 3 studies could affect Moderna’s cost reduction goals, adding financial pressure. These factors contribute to a cautious outlook on the stock.
MRNA’s price has also changed moderately for the past six months – from $38.250 to $25.800, which is a -32.55% drop .