Moderna’s Stock Just Stumbled. Is It a Buy on the Dip?
The stock fell 17% in one trading session.
Moderna, the biotech company known for its coronavirus vaccine, experienced a significant drop in its stock price of 17% in a single trading session. This decline came after a year of remarkable growth, driven by the success of its COVID-19 vaccine. The company's expertise lies in messenger RNA technology, which involves teaching the body to produce proteins that prevent or fight diseases.
The stock gained over 500% in 2023 and reached a price of around $200, which is significantly above the average Wall Street 12-month price estimate of $135. Moderna's recent portfolio includes oncology-focused products, particularly a phase 3 clinical trial studying a personalized cancer vaccine candidate in combination with Merck's Keytruda.
Initial trial data showed promising results, with a 42% reduction in recurrence of death for certain melanoma patients, and a 58% reduction in the risk of cancer spreading. However, leaked data from the study caused the stock to drop sharply. Despite the recent decline, the stock is still up more than 500% this year and may present an opportunity for long-term investors looking to add shares to their portfolio.
However, biotech investors should be prepared for potential volatility due to ongoing clinical trial data reports.
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