by BLACK ENTERPRISE Editors
*Originally reported by Reuters
Nov 1 (Reuters) – Moderna (MRNA.O) should hit the lower end of its sales target for this year as it only needs to tap a small portion of the private market with its COVID vaccine to reach that goal, according to industry analysts.
That forecast was called into question last month, when Pfizer (PFE.N) lowered its full-year outlook for sales of its COVID-19 shot by about $2 billion due to lower-than-expected vaccination rates.
Moderna’s shares have fallen by some 22% since its larger rival’s warning.
“It is unlikely Moderna will have a negative fall (in its sales outlook) like Pfizer because they started off much more conservative,” said Oppenheimer & Co analyst Hartaj Singh.
Jefferies analyst Michael Yee said that while the rollout of the new shots was initially slow, it seems to be picking up, citing recent data. Yee expects most of the demand to come from people aged 65 and over.
The COVID vaccine is Cambridge, Massachusetts-based Moderna’s lone marketed product.
Its research and development (R&D) costs ballooned 62% to $1.1 billion in the second quarter as its seeks to bring other products to market, including a flu vaccine and a shot against respiratory syncytial virus (RSV).
Data from a late-stage study of Moderna’s flu vaccine with an updated formulation released in September showed it generated a stronger immune response against all four A and B strains of the influenza virus compared to traditional flu shots.
RELATED CONTENT: New COVID Shots Still Hard To Find For Some Americans
Source: Black Enterprise