Moderna Faces Wall Street Pressure
Moderna shares took a hit as a Wall Street firm turned bearish on the vaccine maker following strong quarterly results. HSBC Global Research analysts, led by Yifeng Liu, downgraded Moderna to Reduce from Hold while raising their price target to $86 from $75.
Market Reaction
Despite Moderna's impressive Q4 2023 results and reaffirmed guidance for 2024, the stock fell by 3.8% to $92.78 in early afternoon trading. Conversely, Pfizer, another prominent Covid-19 vaccine manufacturer, experienced a 2% decline. The S&P 500 also dipped by 0.1%.
Concerns and Debate
HSBC analysts highlighted concerns surrounding Moderna's cancer vaccine program and the efficacy of its vaccine for respiratory syncytial virus (RSV). Recent data suggested that the RSV vaccine's efficacy diminishes more rapidly compared to competitors, posing challenges to its market potential post-launch in 2024.
Pricing Strategy
Anticipating potential challenges with the RSV vaccine, HSBC predicted that mRNA-1345 is likely to be priced at a discount due to the anticipated need for more frequent dosing than rival products.
Market Impact
The upcoming meeting of the Centers for Disease Control and Prevention’s Advisory Committee on Immunization Practices is expected to influence Moderna's stock performance. Analysts are closely monitoring discussions around RSV vaccine data scheduled for Thursday for insights into the vaccine's performance.
Overall, Moderna is navigating through both market excitement over its financial results and concerns regarding the future performance of its vaccine offerings.
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