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Moderna stock forecast 2025: MRNA is worth buying for 5 reasons

MRNA

Moderna was founded in 2009 and was established in Cambridge, Massachusetts, USA. Its main business is genetic engineering and focuses on the research and development of mRNA-derived drugs.

The full name of mRNA is messenger RNA, pre-messenger RNA, a kind of immature single-stranded messenger ribonucleic acid, once it is completely processed, it is called "mature messenger RNA", or "mRNA".

These drugs use mRNA as a treatment method and use mRNA as the basis to inject the developed synthetic mRNA into the patient's body so that the patient's own cells can obtain the ability to treat themselves.

At present, the new crown vaccine being researched and developed by Moderna has an effective rate of 94.5%, so it has become one of the vaccines that are sold in large quantities all over the world.

Cambridge, Massachusetts, is not only home to Harvard University but also a world-renowned hot spot for modern biomedicine.

Despite such a "gorgeous background", Moderna's entrepreneurial road is not smooth.

Between 2010 and 2016, this company carried out a series of research and development for conventional vaccines, in an attempt to occupy this vast market and lucrative field with new vaccines.

However, these R&D and clinical trials have basically failed.

However, in this process of innovation, Modena established a leading position in the mRNA field, which attracted the attention of many pharmaceutical companies.

In 2013, Moderna entered the field of therapeutic vaccines in cooperation with AstraZeneca.

In 2014, Moderna joined forces with Alexion to enter the field of rare diseases.

Unfortunately, these cooperative studies have yet to yield results.

This makes some experts directly question the true reliability of Moderna's technology.

However, the outbreak of the new crown epidemic in 2020 gave Moderna an opportunity.

The effective rate of the new crown vaccine and the recent announcement of the clinical results of their therapeutic tumor vaccine has caused the stock price to rise sharply.

From January 1, 2020, to January 25, 2021, Moderna's stock has risen 690%.

Regarding Moderna's financial situation.

In May of this year, Moderna made a profit for the first time, with revenue of US$1.9 billion in the first quarter, and the new crown vaccine contributed nearly 90%.

Company valuation: it is still at a loss stage, and the price-earnings ratio does not exist;

P/B ratio = 23.01

Price-to-earnings ratio = price per share/earnings per share, it is one of the important indicators to measure whether a stock has investment value.

Under normal circumstances, the lower the price-earnings ratio of a stock, the lower the profitability of the market price relative to the stock, indicating that the shorter the investment payback period, the smaller the investment risk, and the greater the investment value of the stock.

If the price-to-book ratio is negative, it means that the company is still at a loss-making stage, and the risk is high, and it is impossible to predict the payback period of the investment.

PS: The price-to-book ratio refers to the ratio between the market price and the net assets per share. The price-to-book ratio = price per share/net assets per share. The lower the ratio, the lower the risk.

On January 25, 2021, the company's market value was 57.5 billion U.S. dollars, which is a company with a large market value.

Moderna is worth buying mainly for 5 reasons:

First of all, mRNA technology is extremely original, and RNA vaccines have been developed. It is the first to verify that the use of RNA can produce vaccines, and it is difficult for new competitors to replicate in a short period.

Due to the relatively high technical threshold for the development of mRNA vaccines, there is currently no product on the market for mRNA vaccines other than Pfizer, and its industry maturity needs to be improved.

The research and development principle of this type of vaccine is to deliver mRNA carrying the genetic information of the virus's characteristic protein into the cell and activate the immune response through expression in the body, thereby producing effective antibodies.

The process of human immunity with mRNA vaccine mimics the process of virus invasion to a certain extent and can stimulate human cellular and humoral immune responses.

Therefore, mRNA vaccines have multiple advantages such as strong immune activity, short research and development cycle, and suitable for the prevention of sudden infectious diseases, and are considered by the industry to have breakthrough potential.

Second, the product pipeline is rich. In addition to the new crown vaccine that is already on the market, Moderna's research and development line also have 1 phase 3 clinical, 7 phase 2 clinical trials, and 5 phase 1 clinical pharmaceuticals.

Third, the current clinical phase 2 data of the Moderna cytomegalovirus vaccine is good, and it enters clinical phase 3. If successful, it will be the only one on the market.

Fourth, before the outbreak of the new crown epidemic, Moderna's mRNA vaccine has carried out multiple clinical studies in the field of preventive vaccines and therapeutic tumor vaccines, of which the fastest progress is still in the phase II clinical trial stage.

Therefore, in addition to the vaccine field, RNA technology is also at the forefront of cancer immunotherapy, especially drugs for ovarian cancer.

Fifth, the company is currently profitable.

However, Moderna is a growth company with very high stock volatility, so we must pay attention to the investment scale during the investment process.

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