Biotechnology company specializing in messenger RNA (mRNA) therapeutics and vaccines Moderna, Inc., (NASDAQ: MRNA) recently revealed that it has joined hands with a nonprofit scientific research organization, IAVI, to tackle diseases like HIV/AIDS, tuberculosis (TB), antimicrobial-resistant enteric infections, and COVID-19.
Following the news, shares of Moderna rose 2.8% on Thursday. The stock pared its gains slightly to close at $156.85 in the extended trading session.
The partnership is aimed at harnessing Moderna’s mRNA platform, which ensures rapid production of material for clinical testing, and IAVI’s expertise in advancing vaccines and antibodies. Further, IAVI’s network is expected to make these treatments available in low-income countries where these diseases are rampant.
Management Commentary
The CEO of Moderna, Stephane Bancel, said, “We are excited to partner with IAVI to leverage the power of mRNA and extend our commitment to global health across multiple diseases. Moderna’s mRNA platform, with its speed, scale, and flexibility, is uniquely suited to tackle current and emerging pathogens.”
Wall Street’s Take
Following the announcement of the collaboration, Brookline Capital Markets analyst Leah R. Cann reiterated a Buy rating on the stock with a price target of $506, which implies upside potential of 218.2% from current levels.
According to the analyst, the collaboration is expected to be a proven and productive one, as the ability to tackle the unmet needs of treatment for deadly diseases, especially in low-income countries, is of great importance. Further, the analyst opines that the collaboration is expected to result in massive revenues for the company in the long run.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on five Buys, seven Holds and one Sell. Moderna’s average price target of $247.20 implies that the stock has upside potential of 55.5% from current levels. Shares have gained 18.8% over the past year.
Positive Sentiments
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on MRNA, as 8.5% of portfolios tracked by TipRanks increased their exposure to MRNA stock over the past 30 days.
Conclusion
The collaboration can be a game-changer for Moderna, as it seeks to tackle a range of diseases with its leading mRNA platform. Further, the company is strongly positioned for substantial revenue growth and the certainty of revenues is visible in the long term.
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