In the realm of pharmaceuticals, Moderna (MRNA) was a name on the fringe five years ago. Specializing in DNA-based drugs and vaccines, the company garnered little attention from investors who were hesitant to make bets on experimental biotechnology.
Then, the world was thrust into the grips of the COVID-19 pandemic, and everything changed.
Moderna’s journey to prominence began long before its COVID-19 vaccine gained regulatory approval. Even prior to the pandemic, the market had started pushing Moderna shares higher. In 2020 alone, the stock nearly quintupled in value, propelled by optimism surrounding its innovative approach to combating diseases. By 2021, Moderna’s shares had rallied nearly 500% from their 2019 lows, reaching unprecedented heights.
However, as the pandemic began to recede with the rollout of vaccines, so did the fervor surrounding Moderna. The stock’s value diminished, now sitting at a fraction of its 2021 peak, representing a mere one-fourth of its highest valuation.
Yet, despite the volatility and fluctuations in value, those who took a chance on Moderna five years ago have reason to celebrate. A $1,000 investment made then would have ballooned to approximately $4,900 today, showcasing the remarkable returns generated by the company’s pandemic-driven success.
The COVID-19 pandemic served as a catalyst for Moderna, validating the potential of its underlying science in the eyes of investors. What was once an obscure biopharmaceutical company emerged as a key player in the fight against the global health crisis.
However, while Moderna’s meteoric rise captured the attention of investors worldwide, the company’s journey has not been without its challenges. Despite its brief swing to profitability during the pandemic, Moderna has since returned to the red and is expected to remain unprofitable for the foreseeable future.
Investing in Moderna is not for the faint of heart. The stock’s volatility, coupled with its current financial status, makes it a risky proposition for many investors. However, there is a bullish case to be made for those willing to stomach the uncertainty.
Looking ahead, analysts anticipate that Moderna’s path to profitability will resume by 2027, offering a potential tailwind for the stock. For investors with a high tolerance for risk, this projection may present an opportunity to capitalize on the company’s future growth prospects.
Moderna’s journey from obscurity to pandemic-prompted gains is a testament to the transformative power of innovation in the pharmaceutical industry. While the road ahead may be fraught with challenges, the company’s ability to adapt and innovate positions it as a formidable player in the biopharmaceutical landscape for years to come.
