Moderna stock veered higher Monday after its flu shot proved to be as effective as older technology in a final-phase study.
The results, says Leerink Partners analyst Mani Foroohar, could eventually help clinch approval for the company's combination Covid/flu shot.
This is "key to MRNA's path to profitability later in the decade — and positioning in the stock skews short," he said in a client note.
Moderna stock rose 1.6%, closing at 27.59. Shares are trading in line with their 50-day moving average, but remain well below their 200-day line.
Moderna Stock Rises On Flu Shot Data
Overall, Moderna's influenza vaccine was 26.6% effective against all flu strains tested in adults age 50 and older. That lines up with licensed standard-dose influenza vaccines, the company said in a news release. The vaccine was also 27.4% effective in adults age 65 and older.
"Today's strong Phase 3 efficacy results are a significant milestone in our effort to reduce the burden of influenza in older adults," Chief Executive Stephane Bancel said in a statement. "The severity of this past flu season underscores the need for more effective vaccines."
He touted the messenger RNA, or mRNA, technology. Moderna's technology helps the body create mRNA. When the mRNA sees the correct target in the body it latches on, preventing the virus from spreading.
"An mRNA-based flu vaccine has the potential advantage to more precisely match circulating strains, support rapid response in a future influenza pandemic, and pave the way for COVID-19 combination vaccines," Bancel added.
Combination Shot Is Looming
Notably, the majority of side effects were mild, including injection site pain. The most common severe effects were fatigue, headache and joint stiffness.
"We expect investors to scrutinize (the flu vaccine called) mRNA-1010 safety details, given a challenging reactogenicity profile in prior trials — with potential read-through to how (Food and Drug Administration) would interpret risk/benefit profile for a FLU/COVID combo vaccine," Leerink's Foroohar said.
He kept his underperform rating on Moderna stock.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
