Moderna COVID-19 Vaccines to Be Updated for New Variants in 2023

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Moderna, a US-based biotechnology company, announced on Monday that it would be updating its COVID-19 vaccines to target new variants of the virus. The company has canceled its existing contract with the UN-led COVAX initiative to supply low- and middle-income countries with millions of doses of its vaccine, with plans to offer updated variant-specific COVID-19 vaccines in 2023. Gavi, the Vaccine Alliance, which leads the procurement and delivery for COVAX, and Moderna have mutually agreed to end the existing contract under which there were pending orders for 2022. Instead, the partners intend to form a new framework to enable Gavi to procure up to 100M doses of its variant-adapted COVID-19 vaccines in 2023 for COVAX. This move comes as new variants of the COVID-19 virus have emerged, particularly in the UK and South Africa. These variants are more contagious and potentially more resistant to existing vaccines. As a result, it is essential that vaccines are constantly updated to target new variants as they emerge. Moderna is currently the only vaccine manufacturer that has announced plans to update its vaccine to target new variants.

However, it is expected that other manufacturers will also need to update their vaccines in the coming years. This highlights the importance of ongoing research and development to ensure that vaccines can keep up with the ever-changing nature of viruses.

Stock Price

On Monday, Moderna ($NASDAQ:MRNA) stock opened at $135.5 and closed at $139.2, up by 3.9% from previous closing price of 134.0. The company announced that its COVID-19 vaccines will be updated for new variants in 2023. Moderna is currently testing a booster shot that could be used to protect against emerging variants. The company plans to submit the booster shot for emergency use authorization by the end of March.

Moderna is also developing a new vaccine that is specifically designed to target variants. This vaccine is currently in preclinical testing and is expected to enter clinical trials later this year.

VI Analysis

Moderna is a high-risk investment in terms of financial and business aspects, according to the VI Risk Rating. The company has 4 risk warnings in its balance sheet, cashflow statement, non-financial and financial journal. However, the company’s fundamentals reflect its long-term potential.

VI Peers

Moderna Inc is a biotechnology company that develops and manufactures drugs, vaccines, and diagnostics. The company was founded in 2006 and is headquartered in Cambridge, Massachusetts. Moderna Inc’s main competitors are BioNTech SE, Pfizer Inc, and Novavax Inc.

– BioNTech SE ($NASDAQ:BNTX)

BioNTech SE is a German biotechnology company founded in 2008. The company has a market cap of 33.72B as of 2022 and a Return on Equity of 71.82%. BioNTech focuses on the development of innovative therapies for the treatment of cancer and other diseases. The company’s most advanced product is a vaccine for the treatment of human papillomavirus (HPV). BioNTech is also developing a number of other vaccines and therapies for the treatment of cancer, infectious diseases, and autoimmune disorders.

– Pfizer Inc ($NYSE:PFE)

Pfizer Inc is a global pharmaceutical company with a market cap of 247.45B as of 2022. The company’s return on equity is 24.63%. Pfizer’s products include prescription and over-the-counter medicines, vaccines, and animal health products. The company operates in over 150 countries and serves patients and customers across the globe.

– Novavax Inc ($NASDAQ:NVAX)

Novavax is a clinical-stage biotechnology company focused on the discovery, development and commercialization of vaccines to prevent serious infectious diseases. Novavax’s market cap as of 2022 is 1.46B and its ROE is 487.21%. The company’s lead product candidates are NVX-CoV2373, which is in Phase III clinical trials for the prevention of COVID-19, and ResVax, which is in Phase III clinical trials for the prevention of respiratory syncytial virus (RSV) disease.

Summary

COVID-19 has been a major driver of Moderna’s stock price in recent months. The company is one of the leading developers of vaccines against the disease, and its stock price has benefited from the increasing demand for its products. Moderna is a relatively new company, and its stock price is still relatively volatile. However, many investors believe that the company has strong potential for long-term growth, and as such, it may be a good option for investors looking for exposure to the healthcare sector.