Moderna’s potential COVID-19 vaccine is not the only reason it is worth buying

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Modernathis is (NASDAQ: MRNA) The stock has grown rapidly in recent weeks thanks to the efforts of the company’s COVID-19 vaccine, funded to the tune of $ 483 million by the United States government.

Investors should know that Moderna’s scientific approach to vaccine development has not been proven. But his mature technology platform and long-standing collaborations with government institutions and established pharmaceutical companies mean he is well-positioned for long-term prosperity, whether or not his COVID-19 vaccine develops as expected.

Moderna was an exciting company before COVID-19

Moderna’s technology platform is focused on its ability to rapidly produce sequences of genetic information ready for clinical trials. This genetic information is the active ingredient in all Moderna products. Then, using the company’s patented therapeutic delivery platform, the sequence infiltrates its cellular targets and makes them react the way Moderna sees it.

Unlike similar technologies for drug delivery, Moderna’s technology platform is very reliable and safe for transporting its payload in cells. This means that the company has already overcome a significant scientific and technical obstacle which its competitors do not have. In a nutshell, it also means that the company has a solution on hand and is looking for the right disease problem to solve. There is no guarantee that Moderna will successfully produce a COVID-19 vaccine, but the marginal cost of the attempt will be low anyway.

A strand of DNA

Image source: Getty Images.

The same is true for a handful of other diseases that Moderna may consider targeting. By investing as much in its technology platform, Moderna has reduced the cost of pipeline games to the point where the company’s own literature compares it to running software. In other words, Moderna has a dominant strategic advantage in biotechnology because it is extremely resistant to the risks associated with pipelines.

Moderna’s clinical collaborations increase its chances of success

Moderna has several scientific peers in the COVID-19 vaccine space. However, Moderna has a significant number of collaborations which strengthened its competitive position well before the pandemic. Merck (NYSE: MRK), AstraZeneca (NYSE: AZN), Lonza (OTC: LZAGY) and Vertex Pharmaceuticals (NASDAQ: VRTX) are partners in a handful of different Moderna therapeutic development efforts. In particular, Moderna’s collaboration with Merck in 2015 directly relates to the development of vaccines against infectious diseases using Moderna’s technological platform and the expertise of Merck’s clinical trials. These collaborations ensure that its candidate therapies and vaccines have a boost in the clinical trial process from the start.

Industry partnerships are only half the story of Moderna’s collaboration. Since 2013, Moderna has also partnered with government institutions such as the Defense Advanced Research Projects Agency (DARPA) and later the Biomedical Advanced Research and Development Authority (BARDA) for its COVID-19 efforts.

Many of Moderna’s peer companies are up to the mark with industry collaborations, but few have the same level of experience or comfort when dealing with government groups. The company’s mix of sustainable and high-powered collaborations means that its vaccine development efforts receive cash injections from the start and essential help sets during the clinical trial process, increasing the chances of success.

Moderna stock

Image source: YCharts

Investors Should Look For Buying Opportunities

Since Moderna does not yet have a product on the market, its financial data is of limited use in the analysis. Nevertheless, Moderna’s share price is currently more than double that of a year ago. Likewise, its market capitalization more than doubled compared to 2019, going from $ 6.58 billion to $ 15.13 billion in the first quarter of 2020.

Although the business is not yet profitable, its constant investment in its own platform, its wide range of strategic collaborations and its investments in basic sciences make it one of the most dynamic biotechnology companies with market capitalizations. similar. Compared to biotechnology companies pursuing similar scientific approaches, such as Inovio Pharmaceuticals (NASDAQ: INO), Moderna is the best choice for investors.

Curious Moderna investors may need to plan their purchase well. Moderna’s stock could plummet when its vaccine trials fail, or it could skyrocket again on favorable preliminary results. Right now, it’s worth buying for long-term holders, as the company’s platform will eventually succeed in making a vaccine or therapeutic drug profitable. Those looking for a short-term return structured around playing on the success of Moderna’s COVID-19 efforts should probably wait for the price to drop from its current heights to make the most of the growth potential of the ‘company.



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