Moderna’s valuation reflects expectations for big growth, in this case coming from two main drivers: continued sales of its Covid-19 vaccine and future windfalls from new vaccines using mRNA tech
There’s no real precedent in the drug industry for the rapid rise of Moderna on the back of its highly effective Covid-19 vaccine. The company’s market value soared from $6bn to a peak of almost $200bn in 19 months, exceeding century-old Big Pharma stalwarts. In July, it entered the S&P 500 Index.
The necessity of this process increases as the valuation advances. Consider: Tesla aims to grow vehicle sales by 50% a year on average “over a multiyear horizon.” Assume it does and also achieves a consistent net margin of 10% on vehicles costing $50,000 apiece. By 2026, Tesla would sell almost one in two of all battery electric vehicles worldwide and have expanded its automotive revenue elevenfold.
How about Moderna? Its valuation also reflects expectations for big growth, in this case coming from two main drivers: continued sales of its Covid-19 vaccine and future windfalls from new vaccines and treatments in development that use the same messenger RNA technology. True, the success of its Covid-19 vaccine does bode well for other mRNA medicines. At today’s valuation, though, investors seem to believe Moderna will “generate products rapidly, with lower risk, higher probability of success, and potentially greater efficacy than older technologies,” according to Jefferies analyst Michael Yee. That’s a Tesla-like leap to make from the success, however impressive, of one unique pandemic vaccine.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pfizer, Moderna expected to reap billions from Covid vaccine booster marketDrugmakers Pfizer Inc, BioNTech and Moderna Inc are expected to reap billions of dollars from Covid-19 booster shots in a market that could rival the $6 billion in annual sales for flu vaccines for years to come.
Read more »
Pfizer, Moderna to reap billions from Covid-19 vaccine booster marketFor several months, the companies have said they expect that fully inoculated people will need an extra dose of their vaccines to maintain protection over time and to fend off new coronavirus variants.
Read more »
Pfizer, Moderna to reap billions from Covid-19 vaccine booster marketDrugmakers Pfizer Inc, BioNTech and Moderna Inc are expected to reap billions of dollars from Covid-19 booster shots.
Read more »
US FDA authorises Covid-19 vaccine boosters for the immunocompromisedThe US Food and Drug Administration on Thursday authorised a booster dose of Covid-19 vaccines from Pfizer Inc and Moderna Inc for people with compromised immune systems.
Read more »
Tesla aims to build first cars at new Berlin plant in OctoberTesla hopes to make the first cars at its 'gigafactory' in Gruenheide, near Berlin, in October or soon afterwards, CEO Elon Musk said on Friday
Read more »