UBS: Moderna's clinical-stage vaccines could drive post-COVID revenues

By Scott Kanowsky 

Investing.com -- Vaccines in clinical stage trials may help Moderna (NASDAQ:MRNA) bolster revenue as demand for COVID-19 jabs eases, according to analysts at UBS.

Moderna reported a sharp drop in profit at the end of last year following a tailing off in the pandemic-era rush to snap up its COVID vaccines.

The company said diluted earnings per share fell by more than two-thirds from a year earlier to $3.61 in the three months through December, well below the $4.70 expected. Revenue, down 30% at $5.08 billion, was fractionally above expectations.

Shares in the group were weaker after the results, and have lost nearly a fourth of their value so far this year.

Moderna previously used the windfall from its messenger RNA-based COVID vaccine to push the development of other drugs, notably, a personalized cancer treatment to be applied in conjunction with Merck's (NYSE:MRK) Keytruda immunotherapy drug.

The UBS analysts argued that this treatment, along with Moderna's potential vaccines for respiratory syncytial virus and influenza, could prove to be drivers of top-line growth in the long run.

However, the analysts said the outlook for COVID vaccine sales remains a key topic for investors.

"We think a challenge for valuation [...] is the limited visibility on long-term COVID revenues, though we think second-half 2023 commercial revenues could begin to add clarity on this," the analysts wrote in a note to clients.