Biotech company Moderna (NASDAQ:MRNA) is contemplating pricing its COVID-19 vaccine at $110 to $130 per dose in the U.S. when government contracting ends and the company moves to commercial distribution, CEO Stephane Bancel told the Wall Street Journal. This pricing range is similar to what Pfizer (NYSE:PFE) said it was considering for its COVID-19 vaccine, developed with BioNTech (NASDAQ:BNTX), back in October 2022.
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In earlier supply contracts, Moderna priced its original vaccine at about $15 to $16 per dose. Its updated booster shots cost about $26 per dose, as per a federal supply contract signed in July 2022. Moderna is currently in discussions with hospitals, pharmacies, and pharmacy-benefit managers for the distribution of its vaccine ahead of a potential fall booster vaccination campaign.
It’s worth noting that the higher pricing is not expected to prevent Moderna’s COVID-19 vaccine sales from declining in 2023. On Monday, the company reiterated its 2023 expected minimum COVID-19 vaccines sales outlook of about $5 billion, based on confirmed contracts already signed or deferrals from 2022 into 2023. This estimate marks a considerable slowdown compared to 2022 vaccine sales of about $18.4 billion.
Moderna Focused on Growth Beyond COVID-19 Vaccine
Given the waning demand for COVID-19 vaccines, Moderna is focusing on advancing its 48 programs in development, including 36 in ongoing clinical studies. It is also boosting its research and development expenses to an estimated $4.5 billion in 2023, up from about $3.3 billion in 2022. With over $18 billion in cash and cash equivalents, Moderna is well-positioned to invest in its clinical pipeline.
CEO Bancel stated, “With our infectious disease franchise continuing to accelerate with exciting near-term catalysts for RSV Phase 3 data and Flu Phase 3 data, and recent breakthroughs in the development of individualized cancer treatments, as well as our rapid advancement in rare diseases and promising cardiology programs, the Moderna platform is delivering across several modalities.”
What is the Prediction for Moderna Stock?
Wall Street’s Moderate Buy consensus rating for Moderna stock is based on eight Buys and eight Holds. The average MRNA stock price target of $226.54 implies 23.2% upside potential. Shares have declined 21% over the past year.
