Investors are finding renewed optimism in Moderna as the company expands its pipeline beyond infectious diseases, a move that has sparked interest following several uncertain years after the Covid-19 pandemic. CNBC’s Jim Cramer highlighted this resurgence, noting that for the first time in a long time, Moderna seems poised for growth. Cramer advised potential investors to approach the stock with caution, suggesting they wait for a market pullback before making any purchases. He emphasized that while Moderna is on a promising path, significant returns are likely still years away.
This year, Moderna’s stock price has seen a remarkable upswing, climbing nearly 150%, positioning it as one of the standout performers in the S&P 500. However, the share price remains below its peak of $484 recorded in August 2021, a high reached during the surge in demand for its Covid vaccine. Investors have been keenly anticipating the emergence of new growth drivers, which seem to be materializing at this juncture.
Cramer pointed out that Moderna has unveiled an extensive array of new products and a clear pathway to profitability, a situation that hasn’t been seen for some time. During Moderna’s Science Day, the company outlined an ambitious ten-year roadmap that emphasized its expanding oncology pipeline and innovative vaccine programs, signaling encouraging prospects beyond its Covid-focused endeavors. Following this presentation, Moderna’s stock rallied approximately 20%.
Significantly, Cramer underscored the importance of Moderna’s oncology initiatives, which include therapies currently in mid to late-stage clinical trials aimed at treating various cancers such as melanoma, non-small cell lung cancer, renal cell carcinoma, and bladder cancer. He expressed particular excitement over upcoming results from a late-stage study that investigates a combination therapy involving Moderna’s Intismeran and Merck’s Keytruda for melanoma treatment.
Moreover, the strategic pivot towards cancer treatments reflects a crucial shift for Moderna, particularly as the demand for Covid vaccines diminishes. The company has also made headway in other areas of its pipeline; an advisory committee from the Food and Drug Administration has recently recommended approval for Moderna’s experimental flu vaccine, with a regulatory decision expected on August 5. Additionally, the European Commission approved the company’s combination Covid and flu vaccine earlier this year.
In summary, while there are promising developments for Moderna, including advancements in oncology and other vaccine initiatives, investors are encouraged to exercise patience as the company navigates its transition into new therapeutic territories.
