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Agreement on bird flu vaccines imminent
The Financial Times has published a report on an emerging agreement between Moderna and the US government to fund the final trials of a new vaccine against the bird flu virus, which has begun to dangerously spread among cattle and poultry in the US and could also affect humans. Funding, which could begin as early as next month, is to be provided by the Biomedical Advanced Research and Development Agency (BARDA), an institution under the US Department of Health and Human Services. The agreement includes potential grants worth tens of millions of dollars, as well as the purchase of vaccines in the event of successful tests, as stocks of existing vaccines would be insufficient in the event of a pandemic outbreak. Moderna is known for its breakthrough mRNA vaccines, which can be quickly modified and adapted to changing viral threats. This allows a potential epidemic or pandemic to be managed effectively. In addition to Moderna, Pfizer is also in talks with the US government about funding for bird flu vaccines, but specific information is not yet available in this matter.
After a second confirmed human case of bird flu virus was reported in early April, Moderna's shares began to rise after several months of decline, and their price has already risen by more than 40% since then. It is now at its highest level since February last year. *
Source: Investing.com*
Moderna surprised with its financial results
At the beginning of May, Moderna published its economic results for the first quarter of 2024, which turned out to be a positive surprise despite the negative profit numbers. The loss per share was only $3.07, while the expected figure was $3.58. Total revenue was US$167 million, beating initial estimates of US$97.5 million. Moderna posted a net loss of $1.18 billion. Due to effective cost-cutting measures and surprisingly strong sales of Covid-19 vaccines, the company saw smaller losses. These vaccines are currently its only available product on the market, and vaccination demand has declined significantly after the pandemic. Moderna is awaiting US approval of its new respiratory RSV vaccine, which was due on 12th of May, but the US Food and Drug Administration (FDA) has delayed that decision until the end of May.
Covid vaccines still in play
Although the Covid-19 pandemic has passed, the virus is not gone, and new vaccines are still in development. In particular, the pharmaceutical company Novavax is preparing to offer its vaccines against the new variant in the United States as early as this fall. While mRNA vaccines produced by Moderna, Pfizer or BioNTech can be launched in a short time, Novavax produces traditional protein-based variants that take months to produce. Company, like its competitors, has been losing value since the end of the pandemic. A new $1.2 billion licensing deal with Sanofi could improve its situation.
Source: Investing.com*
Conclusion
Moderna's agreement with the U.S. government to fund final stage trials of a new mRNA vaccine against bird flu could bring it tens of millions of dollars, new source of revenue and strengthen its market position. Despite the decline in demand for Covid-19 vaccines, as pharmaceutical companies move forward with their vaccine and drug development, they compete in reaction speed to new potential health threats.
Warning! This marketing material is not and must not be understood as investment advice. Data relating to the past are not a guarantee of future returns. Investing in foreign currency may affect returns due to fluctuations. All securities transactions can lead to both profits and losses. Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which may change. These statements are not guarantees of future performance. InvestingFox is a trademark of CAPITAL MARKETS, o.c.p., a.s. regulated by the National Bank of Slovakia.
* Data relating to the past are not a guarantee of future returns.
Sources:
https://www.cnbc.com/2024/05/02/moderna-mrna-earnings-q1-2024.html
