The pandemic of 2020 sped up the hyper-growth in Moderna (MRNA). The mRNA-based supplier of vaccines profited from Covid-19 vaccine sales. As the years passed, Covid evolved. The weaker variant hurt the Covid vaccine’s addressable market. Last week, MRNA stock traded at a 52-week low at below $60.
The stock is on sale as bears bet that Moderna does not have a strong enough mRNA platform to produce vaccines for other diseases.
Novavax (NVAX) stock is trading in a range. The stock lost 5.62% last Friday. The firm clarified that the company does not have a full-year outlook related to the Covid vaccine. Shareholders will need to wait for Novavax to reaffirm or refresh its outlook for the full year of 2024.
Biotech investors uneasy about the narrow product lineup in the above-mentioned companies may watch Pfizer (PFE). The stock pulled back from $30, closing at $28.58. Still, PFE stock is not trading at a steep discount.
To raise cash, Pfizer cut its stake in Haleon (HLN) from 22.6% to 15%. This raised almost $3.3 billion. Pfizer joined GSK (GSK) in founding Haleon in 2019. Pfizer shareholders need to hope that the company is not raising money to support its dividend. The firm might need to slash its dividend and aggressively pay its debt. Interest rates are still high, which would encourage Pfizer to lower debt levels.
