Shares in drug giant Moderna (MRNA) were over 5% healthier today after Canada said yes to its Covid vaccine.
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Health Canada said it had given the green light to Moderna’s Spikevax, its updated COVID-19 mRNA vaccine targeting the SARS-CoV-2 LP.8.1 variant, for patients aged at least six months.
Ready For Fall
Moderna said it is now on track to deliver the updated vaccine in time for the 2025-2026 vaccination season. It added that all Spikevax vaccines for the Canadian market will now be manufactured domestically.
The drug substance will be produced at Moderna’s new facility in Laval, Quebec, with fill-finish operations completed by Novocol Pharma in Cambridge, Ontario. These Canadian-made doses are expected to be available for this fall.
“This approval is a regulatory milestone and a testament to Canada’s growing leadership in biomanufacturing and public health resilience,” said Stéphane Bancel, Chief Executive Officer of Moderna.
The updated COVID-19 vaccine has already been approved in Europe, Japan, Switzerland and other countries, with regulatory applications pending in more markets worldwide.
Business Boost
It comes only weeks after Moderna reported a 41.1% drop in year-over-year Q2 sales to $142 million.
At the time Moderna said tha decline was primarily driven by lower Spikevax COVID vaccine sales, which totaled $114 million in the quarter. Moderna said demand is expected to be concentrated in the second half of the year, aligning with the fall and winter seasons as the vaccine continues to transition into a seasonal respiratory product.
Investor sentiment was also hit by the company dropping its revenue guidance for the full yearto $1.85 billion at the midpoint from $2 billion, a 7.5% decrease. It blamed the “timing of shipments.”
The figures continue Moderna’s difficult year in comparison with its peers – see below.
However, the Spikevax news from Canada is welcome as are its future pipeline.
This includes Intismeran autogene, a personalized cancer therapy which is being developed in collaboration with Merck. This includes two non-small cell lung cancer Phase 3 studies and Phase 2 studies for high-risk muscle invasive and high-risk non-muscle invasive bladder cancer.
Is MRNA a Good Stock to Buy Now?
On TipRanks, MRNA has a Hold consensus based on 3 Buy, 12 Hold and 3 Sell ratings. Its highest price target is $198. MRNA stock’s consensus price target is $46.21, implying a 67.49% upside.
