Moderna Inc (MRNA)

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Moderna, Inc. (MRNA)

Last but not least, we come across Moderna, which has grabbed headlines left and right as a result of its experimental COVID-19 vaccine, mRNA-1273.

Representing Piper Sandler, 5-star analyst Edward Tenthoff has high hopes based on early data. After MRNA published a preprint of mRNA-1273 preclinical data while simultaneously under peer-review for publishing in a leading medical journal, the analyst tells investors that the data suggests “mRNA-1273 supports clinical activity in humans.”

“mRNA-1273 formulated in lipid nanoparticles elicited a balance both humoral (antibody) and cellular (CD8 T cell) immunity. Mice immunized with 0.0025-20mcg of mRNA-1273 demonstrated strong dose-dependent correlation between binding and neutralizing antibody responses. Importantly, mice receiving two 1.0mcg doses of mRNA-1273 were completely protected from viral replication in lungs and nasal cavities after re-challenge at 5- and 13-weeks following boost,” Tenthoff explained.

Looking more closely at the candidate, it targets a pre-fusion Spike protein stabilized by two proline substitutions. This is important as it could allow for a more generalizable approach to be used to protect against mutations.

It should also be noted that the Phase 2 study of mRNA-1273 has already enrolled 300 healthy adults aged 18-55 years, and 50 out of 300 subjects over the age of 55. According to Tenthoff, the data from this study should “further validate safety and efficacy of the 100µg dose in a broader population, which was selected for the Phase 3 trial.” This trial is set to kick off in July.

Tenthoff added, “Lonza will support manufacturing of 500 million-1 billion doses per year. mRNA-1273 holds Fast Track Designation.”

Based on all of the above, it’s no wonder Tenthoff reiterated his Overweight rating. With a $100 price target, shares could gain 61% in the next twelve months. (To watch Tenthoff’s track record, click here)

Looking at the consensus breakdown, other analysts are on the same page. With 11 Buys and 2 Holds, the word on the Street is that MRNA is a Strong Buy. The $87.64 average price target puts the upside potential at 42%. (See Moderna stock-price forecast on TipRanks)