Moderna Inc (MRNA) & Novavax Inc (NVAX): Two stocks in focus Tuesday

Highlights

  • Moderna, Inc. (NASDAQ: MRNA) gained 298.73% YTD.
  • Novavax, Inc. (NASDAQ: NVAX) stock increased by 01% YTD.
  • The Nasdaq Biotechnology Index gave a 14.06% return YTD.

Stocks of biotechnology companies Moderna Inc (NASDAQ: MRNA) and Novavax, Inc (NASDAQ: NVAX) were trending on Wall Street Tuesday. However, the MRNA stock was down 0.94% to US$412.80 at 8:48 am ET, while NVAX stock was up 2.3% to US$257.31 at 8:49 am ET.

Moderna Inc.

The Cambridge, Massachusetts-based Moderna Inc. is a biotechnology company. It became famous for its Covid-19 vaccine, which received FDA authorization in 2020.

On Tuesday, the company announced a collaboration with the nonprofit organization Institute for Life Changing Medicines (ILCM) to develop ‘mRNA-3351’ drug for the treatment of a rare disease called Crigler-Najjar Syndrome. The disease can damage the brain and nerves.

Currently, there are around 70-100 known cases of the disease. Moderna plans to license the drug to ILCM without charging any fee, a possible reason for the stock’s retreat on Tuesday.

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For the quarter ended June 30, 2021, the revenue was US$4.35 billion, a big leap from the revenue of US$67 million for the June quarter of 2020. Its net income was US$2.78 billion or US$6.46 per share diluted, compared to the net loss of US$117 million or US$(0.31) per share diluted for the comparable quarter the previous year.

The trading volume of the stock was 13,859,920 on Sep 3. Its 52-week highest and lowest prices were US$497.49 and US$54.21, respectively.

Moderna has a market cap of US$168.2 billion, a P/E ratio of 51.96, and a forward P/E for one year of 14.35. Its cash and cash equivalents were US$5.60 billion as of June 30, 2021.

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Source – pixabay

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Novavax, Inc.

Novavax is a biotechnology company based in Gaithersburg, Maryland. It develops drugs for infectious diseases.

The stock jumped on Tuesday after the company announced its participation in Citi's 16th Annual BioPharma Virtual Conference 2021, an investor conference, on September 9. Novavax’s Covid-19 vaccine candidate is also expected to be discussed at the conference, a possible reason for the massive interest in the stock on Tuesday.

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The company’s revenue for the June quarter of 2021 and 2020 were US$298 million and US$35.5 million, respectively.

The net loss was US$352 million or US$(4.75) per share diluted compared to the net loss of US$17.5 million or US$(0.30) per share diluted for the June quarter of 2020.

Its cash and cash equivalents were US$2.07 billion as of June 30, 2021.

The stock’s trading volume was 4,328,169 on Sep 3. Its 52-week highest and lowest prices were US$331.68 and US$76.59, respectively.

The company has a market cap of US$18.7 billion.

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Bottomline

The Nasdaq Biotechnology Index (NBI) gave a 14.06% return YTD. The health sector has seen robust growth over the past year, boosted by the development and approval of new drugs. Moderna and Novavax gave around 298% and 141% return YTD, respectively. Analysts expect the sector to improve its performance further with continued demand for drugs.

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