Pharmaceutical companies are working tirelessly to create a vaccine for coronavirus. Some stocks skyrocketed thanks to their tests or other products, which help to fight the pandemic. While there are lots of firms working on vaccines, not all of them are successful. However, Moderna made it to the headlines due to its experimental drug, mRNA-1273.
Piper Sandler’s analyst, Edward Tenthoff, thinks that Moderna has great potential. The company recently published a preprint of mRNA-1273 preclinical data. After studying it, the analyst stated that, according to the data, mRNA-1273 supports humans’ clinical activity.
mRNA-1273, formulated in lipid nanoparticles, elicited a balance of both cellular (CD8 T cell) and humoral (antibody) immunity. Mice immunized with 0.0025-20mcg of mRNA-1273 showed a strong dose-dependent correlation between binding and neutralizing antibody responses.
Furthermore, Mice receiving two 1.0mcg doses of mRNA-1273 were wholly protected from viral replication in nasal cavities and lungs after re-challenge at 5- and 13-weeks following the boost.
If we look closely at the candidate, we’ll see that it targets a pre-fusion Spike protein stabilized by two proline substitutions. That could allow us to use a more generalizable approach to protect against mutations more effectively.
How far did the company proceed in drug trials?
The company has already begun the Phase 2 study of mRNA-1273. It has enrolled 300 healthy adults aged 18-55 years. 50 out of 300 subjects are over the age of 55. Tenthoff stated that the data from this study should further validate the efficacy and safety of the 100µg dose in a broader population. It was selected for the Phase 3 trial, which is set to begin in July.
According to the analyst, mRNA-1273 holds a Fast Track Designation. Lonza plans to support the manufacturing of 500 million-1 billion doses per year.
Considering all of this, Tenthoff gave the stock a strong-buy rating. He set his price target at $100. In case of success, shares could gain 61% in the next twelve months.
