Moderna Inc. (MRNA) shares climbed 9.2% on Thursday, making it one of the top performers in the S&P 500, as investors reacted favorably to a series of positive developments. The stock briefly gained nearly 12% during the session, extending its rally to a new annual high.
FDA Panel Backs Flu Vaccine
A key catalyst was the unanimous support from an FDA advisory panel for Moderna's mRNA-1010/mFLUSIVA influenza vaccine for adults aged 50 to 64 and those 65 and older. The recommendation precedes a Prescription Drug User Fee Act (PDUFA) decision expected on Aug. 5, 2026, and planned global regulatory filings. Analysts at Jefferies noted that while approval appears likely, meaningful flu-related revenue is not anticipated until 2027.
Pipeline Expansion Beyond COVID-19
During its recent Science Day presentation, Moderna outlined plans to extend its mRNA platform beyond infectious diseases into oncology, autoimmune conditions, and other therapeutic areas. The company highlighted programs targeting multiple myeloma, ovarian cancer, and in vivo CAR-T therapies, with increased use of artificial intelligence, machine learning, automation, and robotics to accelerate R&D. Plans to begin the in vivo CAR-T program mRNA-6007 in 2027 also fueled optimism.
CEO Stéphane Bancel emphasized the company's multi-horizon strategy, stating that Moderna is applying its mRNA platform expertise to validate, scale, and expand modalities, including T-cell engagers and in vivo CAR-T, while leveraging data and AI to drive innovation.
Analyst Sentiment Mixed but Constructive
Piper Sandler raised its price target to $77 from $69, reiterating an Overweight rating following the rally. Jefferies maintained a Hold rating and $45 target, citing a longer timeline for flu revenue. The positive commentary added to growing sentiment that Moderna's pipeline is gaining momentum beyond its COVID-19 franchise.
CNBC's Jim Cramer expressed cautious optimism, noting that the company's "plethora of thoughtful, new products" presents a clearer roadmap to profitability. However, he advised patience, recommending investors wait for a pullback before buying.
Financial Position Provides Flexibility
Despite the enthusiasm, Moderna continues to operate at a loss as it invests heavily in development. The company reported quarterly revenue of approximately $389 million and trailing 12-month revenue of $1.94 billion, but posted a net loss of $1.34 billion and an EBITDA loss of $1.28 billion in the latest quarter. Free cash flow was negative $692 million.
Moderna holds about $5.21 billion in cash and short-term investments, with a current ratio of 2.4 and long-term debt of $1.25 billion, providing financial flexibility to fund its pipeline. For context, other biotech and tech stocks have also seen recent moves; for example, Credo Technology jumped 8.6% on an Evercore upgrade, and AMD rose 5.9% on a Citi upgrade tied to a Meta AI GPU deal.
While Moderna's near-term financials remain under pressure, the company's cash position and pipeline progress are key factors for investors monitoring its path to profitability.
This article is for informational purposes only and does not constitute financial advice.
