CAMBRIDGE, MA - Biotech firm Moderna , Inc. (NASDAQ:MRNA) has been awarded a $176 million grant from the U.S. government to further the development of mRNA-based vaccines targeting pandemic influenza strains. The funding, provided through the Rapid Response Partnership Vehicle (RRPV) by the Biomedical Advanced Research and Development Authority (BARDA), aims to advance a pre-pandemic vaccine against the H5 influenza virus, a potential threat to human health due to its prevalence in birds and risk of crossing over to humans.
This investment supports the late-stage development required for the vaccine's licensure, with additional provisions to prepare for and expedite responses to future public health emergencies. Moderna's CEO, Stéphane Bancel, highlighted mRNA technology's proven efficacy and rapid production capabilities, as evidenced during the COVID-19 pandemic, expressing the company's commitment to working alongside BARDA for global public health preparedness.
In 2023, Moderna began a Phase 1/2 clinical trial to assess the safety and immune response of its investigational pandemic influenza vaccine, mRNA-1018, in adults. This study includes vaccine candidates for both H5 and H7 avian influenza viruses, with results expected in 2024 to guide Phase 3 development.
Moderna's mRNA platform, known for its role in creating one of the first COVID-19 vaccines, continues to be at the forefront of developing treatments and vaccines for a variety of diseases, including infectious diseases, immuno-oncology, rare diseases, and autoimmune diseases.
The funding from BARDA is part of a federal initiative to enhance the nation's preparedness for potential influenza pandemics. The grant is allocated under the Other Transaction agreement number 75A50123D00005 with the Department of Health and Human Services (HHS), Administration for Strategic Preparedness and Response (ASPR).
This news is based on a press release statement from Moderna, Inc.
In other recent news, Moderna has made significant strides in its vaccine portfolio. The company's mRNA-1283 vaccine met its primary efficacy endpoint in a Phase 3 trial, while its mRESVIA vaccine received approval from the U.S. Food and Drug Administration (FDA) for use in adults aged 60 and over. TD Cowen maintained a Hold rating on Moderna shares, with a set price target of $75.00, following the Advisory Committee on Immunization Practices' endorsement of a single-lifetime immunization for Respiratory Syncytial Virus (RSV) for adults 75 years and older.
Argus increased its price target on Moderna shares to $150, maintaining a Buy rating, and Jefferies reiterated a Buy rating with a price target of $180. These ratings followed positive developments in Moderna's vaccine trials and approvals. The company's mRNA-1083 vaccine, designed to target both influenza and COVID-19, achieved its primary endpoints in a Phase 3 trial, outperforming standard flu and COVID-19 vaccines in adults aged 50 and above.
In collaboration with Merck, Moderna's combined therapy of mRNA-4157 and KEYTRUDA showed a significant reduction in the risk of recurrence or death in high-risk melanoma patients, according to a Phase 2b clinical trial. Piper Sandler and RBC Capital Markets maintained positive ratings on Moderna shares, reflecting these recent developments. The company is also making strides with its updated COVID-19 vaccines, which have shown increased efficacy against new strains.
InvestingPro Insights
As Moderna, Inc. (NASDAQ:MRNA) secures a significant grant for its innovative mRNA vaccine technology, the company's financial health and stock performance are of particular interest to investors. According to InvestingPro data, Moderna's market capitalization stands at a robust $44.44 billion. However, reflecting the challenges of the biotech sector, the company's price-to-earnings (P/E) ratio is currently negative at -7.4, indicating that Moderna is not profitable as of the last twelve months ending Q1 2024. This is further substantiated by a significant revenue decline of 65.78% over the same period.
Despite these challenges, there are positive signs in Moderna's financials. An InvestingPro Tip highlights that the company holds more cash than debt on its balance sheet, a reassuring sign of financial stability. Additionally, management's active share buyback strategy is a vote of confidence in the company's future prospects. With a fair value estimation by InvestingPro at $131.61, the stock is currently trading below this level at $115.95, which may suggest an undervaluation according to some analysts.
Investors considering Moderna may also note that while the company does not pay dividends, it has shown a high return over the last decade and a strong return over the past five years, as per additional InvestingPro Tips. For those seeking more insight, there are several additional InvestingPro Tips available, which can be accessed by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.