Moderna Inc. (NASDAQ:MRNA) shares are trading lower Tuesday after William Blair downgraded the stock to Market Perform from Outperform on Monday, citing valuation concerns.
- Moderna stock is among today’s weakest performers. What’s pressuring MRNA stock?
William Blair Downgrades Moderna on Valuation After a 545% Rally This Year
According to Investing.com, William Blair analyst Myles Minter cited valuation concerns after the stock rose 545% this year and nearly 250% since positive trial news in August. Moderna has a market value of $79.4 billion, though shares have pulled back 17.9% over the past week. Minter said the firm believes interim data from the Phase 3 INTerpath-001 trial of intismeran plus pembrolizumab in adjuvant melanoma, presented at the ESMO Congress, supports a potential new standard of care if Merck and Moderna can roll out the personalized neoantigen vaccine commercially. William Blair is moving to Market Perform while it does more work on other tumor types.
William Blair Says Other Tumor Types Will Decide Whether Intismeran Is Limited to Melanoma
Minter said investors will now focus on whether intismeran can treat other tumors, including renal, bladder and lung cancers, which will determine if its commercial potential compares to checkpoint inhibitors or is limited to melanoma. William Blair models $5.4 billion in peak melanoma sales, subject to a 50:50 profit share, while Keytruda is predicted to reach $35 billion in 2028 before it loses patent protection. The firm’s sum-of-the-parts analysis implies a 70% to 75% probability of success across additional tumor types, for a total net present value just above Moderna’s current market cap. Minter noted that development in those tumors carries meaningful clinical and biological risk. Phase 2 trials in renal and bladder cancer are expected in 2027.
Moderna Shares Drop
MRNA Price Action: At the time of publication, Moderna shares are trading 3.05% lower at $192.79, according to data from Benzinga Pro.
Image via Shutterstock
