Moderna Stock: Buy, Sell or Hold?

Before the COVID-19 pandemic, most investors probably hadn't heard of theModerna (NASDAQ Resonance: MRNA)At the end of 2019, it was a small biotechnology company with only carry and grant revenues and no commercialized products.

Subsequently, with the development and marketing of the COVID-19 vaccine, Moderna began to enter the public eye, bringing the company and its mRNA technology to the forefront of investor attention. Today, nearly four years later, the company is still in the unenviable position of having only one commercialized product.

However, Moderna is developing a strong Koon line that could propel the company forward for the foreseeable future. Is this R&D line strong enough for investors to buy the stock now, or should they wait and see? We'll see.

What does Moderna do?

Moderna utilizes messenger RNA (mRNA) technology to develop vaccines and therapies. Simply put, vaccines that utilize mRNA technology teach people to make their own medicines. This is in contrast to traditional vaccines, which use harmless viruses or bacteria to trigger an immune response. Moderna had been working on this technology for nearly a decade before the pandemic broke out, which allowed the company to quickly bring a vaccine to market.

Moderna is not the only company working on mRNA, but it is the company's focus, so it can devote all of its resources to this technology, and it is also working in other areas, including respiratory vaccines, oncology treatments, and rare disease therapies.

What comes after the COVID vaccine?

As of this writing, Moderna's only commercialized product is the COVID-19 vaccine. While this revenue stream has slowed considerably, it will continue for the foreseeable future. As the virus continues to change, the Company will develop newer versions. The most important thing for the future of the company, and for both former and potential investors, is the future product line.

This year and in 2025, Moderna expects to have additional products on the market. In addition to the updated COVID vaccine, Moderna expects to receive approvals for the influenza/COVID combination vaccine as well as the respiratory hepatitis virus (RSV) vaccine. The company expects additional products to be available after 2025, subject to appropriate regulatory approvals.

The company has plans to launch an RSV vaccine, which it believes has a $10 billion market globally. 2023 sales of RSV vaccines by other companies will be about $2.3 billion, suggesting that Moderna has a significant opportunity in this market.

Is Moderna a buy, sell or hold?

There's no doubt that the success of the COVID-19 vaccine proves that mRNA technology is a viable path for Moderna, which reduces the risk of investing in the company. That said, it's worth remembering that this is a very difficult and capital-intensive business, with millions of dollars spent on developing medicines that only yield binary results.

If Moderna can replicate the success of COVID-19 in the treatment of other respiratory viruses, such as influenza and RSV, then shareholders will be rewarded over time. In addition, treatments for cancer and other diseases could be a catalyst for the company's growth.

For those who use Moderna as a郃 part of a diversified portfolio, I think the stock is worth buying at this time. As more products are introduced to the Moderna曏 market, there will be more opportunities to add to the position over time.

Should you invest $1,000 in Moderna now?

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Jeff Santoro owns shares of Moderna.The Motley Fool recommends Moderna.The Motley Fool has a disclosure policy.

Moderna Stock: Buy, Sell or Hold? Originally Posted by The Motley Fool