Moderna (ARNM), with its widely used COVID-19 vaccine, rose to prominence during the global pandemic. The stock soared a striking 838.4% between 2020 and 2022.
But the company is now entering a new era to demonstrate that its mRNA technology can go beyond COVID-19. With new vaccine approvals, an expanding pipeline and ambitious bets on cancer and artificial intelligence, the company is trying to reinvent itself. But as coronavirus sales fade and competition grows, the question arises whether Moderna’s comeback is based on real progress or just renewed hype.
Moderna shares are down 34% so far this year, lagging the overall market gain of 14.6%. Let’s find out if Moderna is still worth buying or keeping.
Moderna’s second-quarter results showed a company still facing post-pandemic challenges, but determined on a comeback based on discipline, cost control and scientific execution. The company reported total revenue of just $142 million, a sharp drop from its pandemic-era highs. It also posted a net loss of $825 million, although that represented a marked improvement from the $1.3 billion loss a year ago.
Despite the heavy loss, Moderna’s cash and investment reserves remain strong at $7.5 billion, providing an important cushion as it navigates a post-COVID-19 environment. Moderna has reduced operating expenses by 40% year over year on a cash cost basis, saving $581 million in expenses compared to the same period in 2024. The company has reduced R&D, SG&A and combined cost of sales by 35%, marking the fourth consecutive quarter of double-digit reductions in overhead.
On the commercial front, Moderna received three major approvals from the FDA this year, including the next-generation COVID-19 vaccine mNEXSPIKE, mRESVIA (an RSV vaccine now approved for high-risk people ages 18 to 59) and full approval of Spikevax for children ages six months to 11 years. These milestones show significant progress toward Moderna’s goal of stabilizing and expanding its vaccine portfolio in the post-pandemic era.
The development of the Moderna pipeline is more important than ever. The company revealed promising Phase 3 data for its flu vaccine, which could lay the groundwork for a future combination flu and COVID-19 vaccine, a potential business differentiation in a crowded market. In addition to respiratory programs, Moderna’s rare disease and non-respiratory vaccine portfolios are continually growing. Moderna is also deepening its oncology relationship with Merck (MRK), focusing on personalized neoantigen therapy and Intismeran (mRNA-4157).
