Moderna says its “next-generation COVID-19 vaccine” receives UK clearance. Does that mean that now is a potentially good time to buy Moderna stock?
On Monday morning, shares of COVID-19 vaccine pioneer Moderna (NASDAQ:MRNA) rose by more than 3% as the firm announced more success in its attempts to combat the virus.
The mRNA specialist got conditional approval for its mRNA-1273.214 omicron-containing bivalent COVID-19 booster vaccine from the Medicines and Healthcare Products Regulatory Agency, or MHRA. The UK’s immunization licensing authority has authorized a bivalent vaccination for the omicron variant for the first time.
Is Now The Time to Buy Moderna Stock? Beyond Spikevax
The mRNA-1273.214 vaccine combines Moderna’s Spikevax vaccine against COVID-19 with a novel candidate against the BA.1 omicron variant. The firm thinks the bivalent vaccination will combat the new version better than its original vaccine.
The confidence of Moderna (NASDAQ:MRNA) is based on encouraging results from a phase 2/3 clinical study. The study satisfied all its significant goals, delivering a better BA.1 omicron neutralizing antibody response than the original Moderna vaccine. Booster doses of the bivalent vaccination boosted omicron neutralizing titers by eight times. The newly approved vaccination demonstrated high responses against BA.4 and BA.5.
The UK approval covers 18-year-olds for now. As more is learned about Moderna’s new vaccine, its age range may expand.
Is Now The Time to Buy Moderna Stock? What’s Ahead
Investors worry Moderna’s COVID-19 triumph is a one-time boost. Even after a 50% jump since mid-June, Moderna (NASDAQ:MRNA) is valued at less than six times its trailing 12-month profits, showing that few investors anticipate Moderna to be profitable for more than a year or two.
Considering the company’s financial outlook for the coming years, investors may see this as an ideal time to buy Moderna stock.
Last week, Moderna (NASDAQ:MRNA) surpassed COVID-19 vaccination sales estimates after the company posted a quarterly profit beyond expectations. Moreover, the company maintained its full-year sales projections of $21 billion based on existing contracts.
In Q2 2022, the company made $5.24 per share on $4.75 billion in revenue. As anticipated, the company’s profit decreased by 19%. However, revenues increased by over 9% to $4.75 billion, including $4.53 billion from the Spikevax vaccine.
Due to COVID-19’s continuing development, additional immunizations and boosters may be needed for some time. Although the omicron form has been modest, a mutation might create a more dangerous threat, prompting a more significant reaction from health authorities and the public.
Moderna (NASDAQ:MRNA) predicts considerable demand for their new vaccine. It’s filed regulatory papers for Australia, Canada, and the European Union. Biotech expecting a regulatory reaction within weeks.
Moderna (NASDAQ:MRNA) must overcome worrisome patterns. Moderna has wiped down over $500 million in expired vaccine doses in its second-quarter financial results. Even with high-profile government purchases, the company doesn’t always deliver on time if fewer people seek immunizations.
Hard-to-Value Moderna Stock
When a company’s demand spikes, investors have trouble pricing its shares. Businesses with consistent, predictable growth are easy to value. This is important to consider when looking at whether or not to buy Moderna stock.
Moderna’s current pricing undervalues its non-COVID-19 therapies. Investors who are optimistic about the firm should look at its vaccine as proof of concept for its whole mRNA-based business strategy.
Regardless of the outcome of COVID-19, Moderna (NASDAQ:MRNA) seems well-positioned to uncover new development prospects in the years ahead due to the wide range of areas in which it might enhance patients’ lives. If you are already looking at this company, it is good to consider these factors when deciding whether or not to buy Moderna stock.
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Author Shariq Khan 
