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All eyes were on biotechnology Modern (NASDAQ: mRNA) in 2020. It was not a very popular name in the pharmaceutical space, as it does not have approved products on the market yet. But its sudden entry into the COVID-19 vaccine competition garnered a lot of attention and it became the second company to gain approval in a race with dozens of players. Not surprisingly, its shares are up 488% so far this year, while S&P 500 has gained 16%.
December 11 Pfizer (NYSE: PFE) and its German biotech partner BioNTech (NASDAQ: BNTX) became the first to receive an Emergency Use Authorization (EUA) from the Food and Drug Administration for a coronavirus vaccine candidate, BNT162b2. Moderna became the second company to receive USA for its vaccine, mRNA-1273, on December 18. The first vaccine was 95% effective while the last one showed 94.1% efficacy in phase 3 trials that are still ongoing.
So now that Moderna’s vaccine is available and the inoculation process has begun, is the company still a good investment?
Image source: Getty Images.
Now that vaccines are out, we will see how effective they are at treating COVID-19. At one point in December, Moderna’s shares had risen as much as 768%, but now it appears to be declining. That could be because the vaccine market has tremendous competition, and ultimately the value of a particular vaccine could decline.
Investing in this market is risky. Moderna did wonders in a short span, but her future depends heavily on her COVID-19 vaccine. Most of its other vaccines in clinical trials use the same mRNA technology, so the success of mRNA-1273 will validate other treatments in its portfolio. The stakes are high in the success of the vaccine.
YCharts mRNA data.
If you have already invested in Moderna, I suggest you keep it. And any investor who still wants a foothold in this risky game should keep their allotment small with this biotech.
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