Title: Moderna Stock Plummets Amid First U.S. Avian Flu Death
Moderna’s stock took a plunge on Wednesday, dropping more than 9%, as it lost most of its Tuesday gains. The volatility in the stock came after the first U.S. death from avian flu, bringing its mRNA H5N1 vaccine development into sharp focus.
The stock had soared over 10% on Tuesday but reversed course early Wednesday. In the past five trading sessions, the stock has climbed roughly 4%.
The first human death from avian flu in the U.S. was reported in Louisiana. The CDC continues to assess the situation and has emphasized that the risk to the general public remains low. However, individuals with occupational or recreational exposure to infected birds or other animals face a higher risk of infection.
As of January, there have been 66 confirmed cases of H5N1 in the U.S. since 2024, the CDC reported on Monday.
Moderna received a $176 million grant from the U.S. government in July 2024 to advance its mRNA H5N1 vaccine, currently in early-stage trials. This came after a virus outbreak in cattle infected three dairy workers, sparking concerns about a human outbreak.
Moderna’s stock surge following its COVID-19 vaccine development in 2021 hasn’t translated into sustained success. After racking up over a 2,000% increase in 2021 and posting its first profit, the company’s revenue slumped 64% to around $7 billion in 2023. This was a significant drop from the $18.5 billion in sales reported in 2020.
Analysts polled by Bloomberg expect Moderna to report a loss of over $9 per share in fiscal 2024 and a 50% sales decline from 2023 levels.
Even with this week’s uptick, Moderna’s stock has fallen nearly 60% since last year. More than half of the analysts tracked by Yahoo Finance have a "hold" rating on the stock, but on average, they see its price climbing to $74 in the next 12 months, implying a 56% upside from current levels.
Other companies developing mRNA avian flu vaccines also saw their stocks rise on the news. Novavax shares jumped almost 11% on Tuesday, while CureVac stock climbed over 4%. Pfizer shares inched up 0.9%, while GlaxoSmithKline dipped 1%.
An increase in COVID-19 cases reported by the CDC also buoyed vaccine manufacturers earlier this week.
