Moderna Has Multi-Billion-Dollar Opportunity Outside Of COVID-19 Vaccines, Analyst Says

Moderna, Inc. MRNA rose to prominence with its messenger RNA-based COVID-19 vaccine. The stock capitalized on the catalyst and ran up from obscurity to respectable levels.

The stock rally has cooled amid fears regarding the sustainability of the strength induced by the COVID-19 vaccine.

The Moderna Analyst: Morgan Stanley analyst Matthew Harrison maintained an Equal-weight rating and $199 price target on Moderna stock.

The Moderna Thesis: Many rare diseases are caused by defective proteins, and mRNA therapeutics offer clinical benefit in these cases by producing functional copies of these defective proteins, analyst Harrison said in a note.

Moderna's initial Phase 1/2 data for propionic acidemia/methylmalonic acidemia, due in 2022, could help unlock the broader opportunity by de-risking a wide range of rare diseases, the analyst said. PA/MMA is a rare inherited disease. The analyst sees rare diseases as a multi-billion-dollar opportunity.

Related Link: Attention Biotech Investors: Mark Your Calendar For These June PDUFA Dates

"Initial proof of concept could unlock a broader rare disease pipeline because mgmt. can easily replace one mRNA with a new mRNA to target a new disease," Harrison said.

The initial data could be directional, the analyst said. Rare diseases, however, could be an underappreciated long-term pipeline driver for Moderna, he added.

Moderna Price Action: In premarket trading Friday, Moderna stock was edging up 0.23% to $143.59, according to Benzinga Pro data.

Posted In: Matthew HarrisonMorgan StanleyAnalyst ColorBiotechReiterationAnalyst RatingsGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.