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Moderna's mRNA-1283 Vaccine Shows Promising Results in Phase-3 Trial

Moderna's next-gen COVID-19 vaccine shows stronger immune response, boosting stock by 13% and expanding beyond COVID with a promising pipeline.

By Alex P. Chase

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3/26, 09:12 EDT
Moderna, Inc.
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Key Takeaway

  • Moderna's mRNA-1283 vaccine shows higher immune response in Phase-3 trial, stock rises 1.2% premarket to $111.75.
  • Oppenheimer upgrades Moderna to "outperform," forecasts five products by 2026 despite a challenging market.
  • Moderna aims for FDA approvals for RSV and flu vaccines, expects sales growth in 2025 with up to 15 new products in five years.

Positive Phase-3 Trial Results

Moderna announced on Tuesday that its next-generation COVID-19 vaccine, mRNA-1283, demonstrated a higher immune response than the current version of the shot in a Phase-3 trial. The updated vaccine showed a stronger immune response to both the Omicron variant and the original strain of COVID-19, particularly in individuals over the age of 65. Additionally, the new vaccine features an improved shelf life, which Moderna suggests could reduce the burden on healthcare providers. Chief Executive Stéphane Bancel expressed confidence in the vaccine's potential, highlighting its role in Moderna's combination vaccine against flu and COVID-19, mRNA-1083.

Stock Market Response

Following the announcement, Moderna's stock saw a 1.2% increase in premarket trading to $111.75. This rise comes after a year-to-date gain of 11%. Furthermore, Moderna's stock closed more than 13% higher on Tuesday after Oppenheimer upgraded the stock to "outperform." The financial firm projected that Moderna could market five products by 2026, despite a challenging 2023 where the company's stock fell nearly 45% due to decreased demand for COVID products.

Pipeline Potential and Future Prospects

Oppenheimer analyst Hartaj Singh highlighted Moderna's pipeline potential, noting possible product launches over the next 12 to 18 months that could boost sales in 2025. These include a potential approval for Moderna's experimental vaccine against respiratory syncytial virus (RSV) and an experimental flu vaccine, both of which have shown promising results in trials. Additionally, Moderna may seek FDA approval for its experimental personalized cancer vaccine in collaboration with Merck, targeting melanoma and other cancers.

Expansion Beyond COVID-19

Moderna reiterated its expectation for sales growth in 2025, emphasizing the potential approval of its RSV vaccine and the combination shot targeting COVID and flu. The company anticipates revenue to fall to $4 billion in 2024 before growing again in 2025, aiming to "break even" in 2026. Moderna plans to launch up to 15 products in the next five years, building on the success of its mRNA COVID-19 vaccine to develop additional vaccines for diseases like melanoma and influenza.

Management Quotes

  • Stéphane Bancel, CEO of Moderna:

    "mRNA-1283 is a critical component of our combination vaccine against flu and Covid-19, mRNA-1083, and this milestone gives us confidence in our ability to bring this much needed vaccine to market."