Moderna: Stock to Avoid or Bad News Buy?

Core Insights - Moderna experienced significant growth during the early pandemic due to its rapid development of a coronavirus vaccine, with stock prices soaring over 700% and peak vaccine sales exceeding $18 billion in 2022 [1][2] - As demand for coronavirus vaccines declined, the company shifted its focus towards cost-cutting and developing a seasonal vaccine portfolio, including opportunities in oncology and rare disease therapeutics [2][9] - Recent setbacks include the U.S. FDA's decision not to review Moderna's flu vaccine application, leading to a more than 3% drop in stock price [3][4] Company Developments - Moderna's mRNA technology has been pivotal in its success, allowing the company to produce two coronavirus vaccines, Spikevax and mNEXSPIKE, both adapted for the 2025-2026 season, along with a respiratory syncytial virus (RSV) vaccine [7][8] - The company aims to launch its flu vaccine, mRNA-1010, in the global market for the 2027-2028 flu season, which is a critical component of its growth strategy [8] - Despite a recent failure of its cytomegalovirus (CMV) vaccine candidate in a phase 3 trial, Moderna continues to advance its oncology candidates and early-stage programs for rare diseases, planning to reinvest revenue from seasonal vaccines into these initiatives [9]